Bennelong’s concentrated equity fund produced a 19.9 per cent return year-on-year (YOY), or 24.5 per cent (financial year-to-date), making it the best performing fund in its class, according to Morningstar.
Bennelong Australian Equity Partners investment director, Julian Beaumont, said they picked 25 companies that had strong fundamentals, and Domino’s pizza enterprises was one of their stand-outs. “It’s put down new stalls and expanded some of its overseas operations. It’s had really strong momentum, a great management team, innovative products, and, perhaps surprisingly, a better food offering,” he said.
Another strong performer that they invested in pre-initial public offering was BWX, who owns the Sukin range of natural skin care products.
The company grew from $100 million to a $500 million company, but there was more growth to come.
“Australian revenues were growing at about 40 per cent, so it now had the opportunity to move offshore… to England, Canada, but most importantly China,” Beaumont said.
They also found themselves in growing sectors of the economy, like healthcare, which was their biggest exposure in the portfolio.
Holdings included CSL, Ramsay Health Care, and Fisher & Paykel.
They also held shares in tourism and gaming, including Star Entertainment and Aristocrat, fuelled by the influx of Chinese victors, Beaumont said.
