10 active funds that trumped the market in early 2025

The first three months of 2025 were anything but smooth sailing.

U.S. President Donald Trump’s return to the White House ushered in a fresh wave of protectionism as he kicked off his second term by slapping tariffs on America’s closest trading partners  (Canada, China, and Mexico) while warning that the rest of the world "NOBODY is getting 'off the hook'."

Investors grew nervous and sentiment started to turn. But up until March 30, markets reacted in a predictable way. Growth sold off. Defensives surged. Value outperformed.

Amidst the volatility, a handful of Australian managed funds stood tall. They weren’t just lucky - they anticipated Trump’s moves and positioned accordingly.

In this wire, we explore how some of the top-performing managers adapted their portfolios before markets turned, the key moves that drove their outperformance, and how they’re positioned for what’s next.

Editor’s note: This piece examines fund performance over a single quarter - a brief snapshot in time. While it offers insight into how managers navigated a volatile period, past performance is not a reliable guide to future outcomes. Please note, this analysis covers the period before Liberation Day (April 2), which triggered a market correction.

Q1 2025 at a glance

Sources: Market Index, Standard & Poor's, Bloomberg

The scoreboard: Q1’s top performers

Source: Morningstar. This list of funds is not, nor is it intended to be, a set of recommendations. Please do your own research and seek advice from a professional before making any investment decisions of your own. Please note that not all Australian funds are represented here and that only the eligible funds in the Livewire 'Find Funds' database are assessed.

Behind the Numbers: How they did it

In reviewing the top 10, three key themes stood out: 1) Australian small caps, 2) value-oriented international equities, and 3) alternatives; namely, infrastructure and private equity.

#1 - Small caps shine

According to Datt, the key to his outperformance was a decisive tilt toward gold and a reduction in high-beta exposures before markets took a hit.

“We took a strong view that gold would perform very well during a period of uncertainty post January with the inauguration of Donald Trump,” he says.

With gold rallying 19%, Datt bought into a mix of established producers and select developers and explorers, while trimming positions in technology and financial stocks.

Specific stock decisions helped too:

• Datt initiated a position in Metals X (ASX: MLX), a Tasmanian tin producer trading at 2.5x EBITDA with half its market cap in cash. The company stands to benefit from anticipated tin supply squeezes due to civil unrest and resource depletion in major producing regions.
• The funds also increased their holding in Gold Road Resources (ASX: GOR), a gold miner currently attracting corporate interest from JV partner Gold Fields. Datt believes any takeover offer would require a higher price than the initial approach.
• One of his best-timed exits was Life360 (ASX: 360). Datt sold the stock over concerns about its lofty valuation, high market beta, and U.S. exposure - a move vindicated when the stock fell 30% from their exit point during the quarter.

"Our funds continue to be overweight gold, albeit at a lower weighting than carried over the March quarter. We continue to be overweight cash given the upcoming tax loss season which generally provides excellent medium-term buying opportunities," Datt says about his current positioning.

#2 - Value makes a comeback

Jacob Mitchell, Antipodes' Chief Investment Officer, had warned investors in February about dangerously concentrated markets, arguing that a “US quality tech bubble” was forming - with valuations stretched to 25 times earnings, more than double those of value stocks.

The Antipodes Global Fund maintained its pragmatic value strategy. With tech exposure at just 7.8% (compared to 23% for the benchmark) and 10.4% allocated to materials (including Barrick Gold), the fund was well insulated from the sharp falls in growth stocks.

“Valuation always matters in the long run,” Mitchell said in February.

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Antipodes made the following pivots during the quarter:

• Mitchell bolstered defensive allocations by buying into hospital operator HCA Healthcare (NYSE: HCA) and British utility National Grid plc (LSE: NG)
• Antipodes shifted its Chinese tech exposure by rotating out of Alibaba (NASDAQ: BABA) as its stock rallied and boosting weights to JD.com and Tencent
• He initiated a position in Micron Technology (NASDAQ: MU) after its stock tumbled during the quarter

As part of the broader value rotation, investors also returned to emerging markets. The GMO Emerging Markets Trust (+9.17%) and Fidelity China Fund (+8.80%) benefited from Chinese policy support and lower exposure to U.S.-centric volatility.

#3 - Alternatives show resilience

The infrastructure sector shone during a stormy period for markets, with the Maple-Brown Abbott Global Listed Infrastructure Fund delivering +8.54%.

Earlier this year, Justin Lannen, Portfolio Manager of the strategy, said the fund was well-positioned for the uncertainty 2025 would bring.

“We see substantial organic growth opportunities for global listed infrastructure, predominantly driven by the energy transition, but also supported by long-term themes such as water, transport mobility, and digitalisation,” Lannen said.

Maple-Brown sees increasing capex opportunities across infrastructure assets, underscoring the sector’s long-term growth potential. Lannen also noted that infrastructure businesses, which typically carry significant debt for capital works, could benefit if rates fall this year as expected.

The fund’s top holdings include Cellnex Telecom (Spain’s leading telecom tower operator), Getlink (the operator of the tunnel connecting France and the UK), and Severn Trent (a major British water utility).

In private equity, the Neuberger Berman Global Private Equity Access Fund (AUD) posted +7.25%.

Gabriel Ng, a Managing Director at Neuberger Berman, has previously highlighted the opportunities in co-investments and secondaries, particularly midlife co-investments that provide growth capital to mature companies.

“We focus on companies where there’s a clear path to growing revenues and profits - not just relying on leverage or multiple expansion,” Ng said.

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