Hyperion named small-caps manager of the year

Hyperion named small-caps manager of the year. Mark Arnold runs the Hyperion Small Growth Companies Fund, which Morningstar has named the Fund Manager of the Year in Australian equities in the small-caps category. The fund generated an average return of 25.3 per cent over the past five years, against the benchmark's 4.8 per cent. Arnold says Our focus is on only investing in the highest-quality businesses available, and we have an extreme definition of quality. So which stocks fit this bill? Arnold says they added Henderson Group last year. We think they've got a good product range and offer a strong value proposition to customers. It is a capital-light business, where growth in revenues is largely reflected in free cash flows. Hyperion also holds stakes in Carsales, Iress, OzForex and Veda. Overall, Arnold says there is reasonable long-term value within the small-cap space. (VIEW LINK)