Holding a concentrated portfolio is crucial, according to Datt Capital, if investors want to maintain risk control in Australian equities.
The Datt Capital Absolute Return fund, which invested in Australian small and mid-cap equities, had a single stock limit of 15% which the firm described as being a “reasonably concentrated” portfolio.
A concentrated portfolio was important in Australian equities to maintain risk control amid a large universe of stocks and industries.
Chief investment officer, Emanuel Datt, said: “The Datt Capital philosophy can be described as active contrarian investing with an inclination towards growth. We utilise a long-term investment approach that focuses on capital preservation and absolute wealth accumulation, however not at expense of growth.
“We are both highly opportunistic and highly disciplined investors, with a strong emphasis on risk control. The fund is industry and market cap agnostic, investing solely in the best opportunities that provide the best risk-adjusted returns. Whilst risk control is core focus its not achieved by having a widely diversified portfolio.”...