Steve McCarthy

The art of long term investing appears to becoming rarer these days in a market where short term price action is the most focused upon investment input. However, we have always generated our most significant returns by holding onto our best stocks for the long term. Rather than reacting to... Show More

Steve McCarthy

Prior to buying any new positions or adding to any existing positions, we always ask ourselves 2 simple questions: i) Is this a high quality company? ii) Is this an under-valued stock? If both answers are a resounding yes we generally proceed in purchasing that stock. Whilst our approach is... Show More

Steve McCarthy

The market moves in cycles which are often extreme. We are currently experiencing a market which appears almost exclusively focused upon momentum rather than value, quality or traditional fundamentals. Should investors give up on fundamental value investing strategies and follow the markets’ momentum focused lead? Or is it time to... Show More

Steve McCarthy

Meeting with management from small cap companies is an important part of any professional investors process. Here we share our thoughts following recent meetings with the teams from 5 microcap companies on our radar, including Pioneer Credit, Gale Pacific, Joyce Corp, Blackwall and Zenitas Healthcare. Show More

Steve McCarthy

In our search for under-valued high quality ASX listed smaller companies we occasionally come across an opportunity which truly stands out from the crowd. In this article we discuss a company which is currently trading at less than 10 times FY18 earnings despite expected earnings growth of 15-20% p.a. over... Show More

Steve McCarthy

We have noticed that investors often gravitate towards exciting but unproven business models which promise revolutionary change. In contrast, investors often tend to overlook more simple business models which are generating cash flows here and now. We view this behavioral bias as a key driver behind the opportunity set we... Show More

Steve McCarthy

Expectations for the upcoming reporting season are at the highest they have been in 3 years. In our experience, heightened expectations often lead to disappointments. This is particularly the case for industrials with global operations which in the last 6 months have had to contend with the impact of Brexit... Show More

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