Debt could easily be seen as “steroids” for businesses. Administered correctly, it’s possible to have a star performer achieve the unthinkable for decades, becoming a goliath of their field. Yet, many stars after seeing short term results, double down on their new “Holy Grail” only to come crashing down – usually on life support. Today […]

Why aren’t microequities fund growing at the EPS Growth rate?

We are sometimes asked why there is a difference between our forecasted earnings growth and our portfolio returns. It is logical to expect that if earnings are growing, then the portfolio returns will be growing too. However, the correlation between earnings and market returns is much lower in the short term than in the long […]

4 Reasons not to invest with Microequities

Over the years as a relationship manager, I have the unique vantage point of having heard almost every reason under the sun as to why people decide to either invest or not to invest in products ranging from Term Deposits to Managed Funds. Below I’ve outlined a few of the reasons potential investors raise with […]

Bitcoin, pricing dislocation and value investing.

Price and value. Many investors think these two concepts are substitutable, but they are not. Each of these terms refer to two very different qualities. As value investors, Microequities believes that there can be large divergences between the two. These divergences, we call “pricing dislocations”. These pricing dislocations mean the price of something, in our […]

The irrational selling of rising microcaps and small caps

Some years ago, I had a relation of mine tell me he was selling some shares in a Microcap company he bought only six months earlier. I asked him what the reason for him selling was, and he responded that he made a 50% gain and was taking profits because he didn’t want to be […]

High income yield and growth via microcap companies

Think of high yield or high income, and small caps and microcaps are probably not going to be the type of companies that would immediately come to mind. There is a good reason for that: almost every equity income fund in Australia is made of large cap companies. In fact, if you look under the […]

Managed funds vs. Passive funds in microcaps

Managed Funds vs Passive Funds in Microcaps – In recent years, there has been an enormous shift towards passive investing and index funds, supported by academics, investment practitioners, financial advisors, and assorted pundits. While we don’t know if they’re right for you (speak to your financial advisor), are there any situations where managed funds may […]

How to identify investment ideas

How to identify investment ideas? This is the question most prospective investors of our managed funds and anyone interested in small cap investing ask us. Identifying investment ideas, whether it is ASX listed companies or global companies can come about many ways. It could be we stumble upon them by trawling through all the companies […]

Superloop set to buy bigair group raise 65m: repost from afr

Written by Sarah Thompson, Anthony Macdonald, Joyce Moullakis Bevan Slattery’s Superloop is set to acquire ASX-listed Bigair Group, sources told Street Talk on Tuesday. It’s understood Superloop will offer Bigair shareholders an all-scrip deal, or a cash and scrip alternative, both valuing the company at more than a 30 per cent premium to its last […]