Concentrated portfolios crucial for Aussie equity funds
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.”
He said he expected positive returns for Australian equities would continue as Government stimulus was currently “extravagant” which was helping alternative assets. However, the threat of rising inflation was a problem for investors who needed to maintain purchasing power and protect wealth.
AUTHOR
Laura Dew
Recommended for you
State Street has rebranded its State Street Global Advisors arm, which has US$4.6 trillion in assets under management, following a series of deals with financial services firms in recent months.
Northern Trust Asset Management has appointed a new head of international and responsible investing.
More than 20 winners have been revealed for the annual Fund Manager of the Year Awards.
Regal Partners has announced its latest alternatives acquisition, taking a 50 per cent stake in real estate and advisory platform Ark Capital Partners ahead of a future hotel strategy launch.
