One metric that matters most when it comes to investing, according to Tim Carletonfrom Auscap Asset Management, is earnings growth. In the short term, sentiment and the multiples investors are willing to pay for a stock can create volatility, but earnings will determine long-term company valuations.
Carleton argues that the MidCap 50 is the most attractive part of the ASX to find companies that can deliver attractive revenue growth over the long term. Over the past decade, The ASX MidCap 50 has delivered a compound annual growth rate of 8.4% compared to 2.1% and (3.1%) for the ASX20 and ASX Small Ordinaries.
Auscap Asset Management is launching the Auscap Ex-20 Australian Equities Fund that will invest in a sector-aware and long-only manner, primarily targeting the mid-cap part of the ASX.
In this short video, Tim outlines the rationale for investing in mid-cap stocks, how the new fund will invest and the differences between Auscap’s existing strategy.
Time Stamps
0:00 - Background on Auscap Asset Management
0:56 - The rationale for the Auscap Ex-20 Australian Equities Fund
1:45 - The case for investing outside the ASX20
5:14 - Why mid caps can continue to outperform
6:04 - Key differences with Auscap’s existing fund
7:47 - Performance attribution across sectors
9:00 - Why invest now?
Introducing the Auscap Ex-20 Australian Equities Fund
Auscap Asset Management is launching a new fund that will invest in companies outside the ASX20.
For more information please visit the Auscap Asset Management website.
Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions.
Safe investing and thanks for reading Livewire.
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Auscap Disclaimer
The views of Auscap Asset Management Limited ACN 158 929 143, AFSL 428014 (Auscap) discussed are based on factual information available to us at the date of publication. Our views and market conditions as expressed may change without notice. There is a risk that investments will not perform as expected, which could have an adverse impact on the performance of Auscap’s funds being the Auscap Long Short Australian Equities Fund ARSN 615 542 213 (Long Short Fund) and the Auscap Ex-20 Australian Equities Fund ARSN 671 901 821 (Ex-20 Fund) (together, the ‘Funds’). Any advice is general only in nature and does not take into account a particular person's objectives, financial situation, needs or circumstances. Because of that, before making any investment decision, you should consider – with or without the assistance of a qualified adviser(s) – the appropriateness of any advice to you, having regard to your objectives, financial situation, needs and circumstances. While all reasonable care has been taken to ensure that this information is complete and correct, no representation or warranty is given as to the accuracy of any of the information provided, including any forecasts. To the maximum extent permitted by law, Auscap, its related bodies corporate, directors, employees and representatives are not liable and take no responsibility for the accuracy or completeness of this material.
This content does not constitute an offer or solicitation to subscribe for units in the Ex-20 Fund and/or the Long Short Fund or an offer to buy or sell any financial product. Past performance is not a reliable indicator of future performance. Before deciding whether to acquire, or to continue to hold, units in a Fund, a prospective or existing investor should fully review the information, the disclosures and the disclaimers contained in all relevant Fund documents, including in particular the relevant Fund’s PDS, or any supplement/update to that document, and consider obtaining investment, legal, tax and accounting advice appropriate to their circumstances. A copy of the Ex-20 Fund’s PDS (including the Additional Information Guide) is available at https://www.auscapam.com/auscap-ex20-australian-equities-fund-product-disclosure-statement/ and a copy of the Long Short Fund’s PDS is available at www.auscapam.com/auscap-fund/pds/. Copies of the Target Market Determinations for the Funds, prepared by Auscap in connection with the Design and Distribution Obligations, are available on request or at www.auscapam.com/ddo/. No part of this material may be reproduced, in whole or in part, without the prior written consent of Auscap.
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Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions.
Safe investing and thanks for reading Livewire.
Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions.
Safe investing and thanks for reading Livewire.