10 ASX stocks loved by top-performing managers

As the destructive ball of uncertainty that is AI-disruption indiscriminately ricochets around the market, leaving entire segments in its wake, it can be challenging to figure out what is still working. 

To help with that, I went straight to the source. First, I used the Livewire fund database (top right-hand corner of your page - FIND FUNDS) to identify the best-performing Aussie equity funds over the past six months (admittedly, a very short timeframe, but also when markets have been most volatile), then I downloaded the latest commentaries from a selection of those funds. 

Whilst some of the commentary was December-end, quarterly commentary, there was also commentary right up until the end of January. For the record, the reports came from Acorn, Ausbil Investment Management, Eley Griffiths Ellerston Capital, Firetrail Investments , L1 Capital, LSN Capital, OC Funds Management, Seneca, and Tyndall. 

The smaller end of the market is where the action is

Before we examine the stocks, it is worth understanding where in the market-cap spectrum most of the top-performing managers currently operate, as well as the common themes they are interested in. 

As you probably already know, the smaller end of the Australian market has been the hottest of late, and this is reflected in the fact that the funds included are mainly small/micro caps and small resources (rather than mega-cap ASX 20 leadership). That’s a story in itself: the market’s recent winners have largely been found further down the cap spectrum.

When you examine what these managers are buying, clear patterns emerge. Across the fund updates, multiple top performers are converging on the same parts of the market. Here is where capital has been flowing.

Gold is the clearest consensus

If there is one trade that is shared, it is gold. Multiple top-performing managers are leaning into smaller-cap gold producers and developers with operational leverage to a strong underlying gold price. Names that surfaced include:

• Genesis Minerals (ASX: GMD) 
• Bellevue Gold (ASX: BGL)
• Capricorn Metals (ASX: CMM)
• Greatland Gold (ASX: GGP)

The common thread is not simply higher gold prices. It is operational improvement.

Managers are favouring businesses where production is ramping, grades are improving, hedge books are rolling off, and balance sheets are strengthening. The emphasis is on earnings acceleration rather than defensive bullion exposure. This is a conviction call on small-cap resource leverage.

Uranium and energy security are structural themes

The second major cluster is uranium. Several high-performing funds are expressing exposure to uranium, framing it as a structural supply-and-demand imbalance rather than a short-term tactical trade. Repeated names include:

• NexGen Energy (ASX: NXG)
• Paladin Energy (ASX: PDN)

The underlying thesis is consistent. Nuclear power is re-entering the global energy mix. Electricity demand is rising, particularly from data centres and AI infrastructure. Supply remains constrained. Western governments are increasingly supportive of domestic critical minerals production. This is energy security intersecting with electrification.

Lithium features, but with nuance

Lithium exposure is also present across portfolios, although the tone is more measured. Managers who benefited from the rebound off the lithium bear market are increasingly talking about rotation within the theme. That includes shifting from established producers into advanced developers or repositioning exposure as the cycle evolves.

This tells us something important; these are not passive commodity allocations. They are active decisions inside volatile thematics.

Industrial enablers and real economy operators

Away from pure resources, there is a strong bias toward businesses tied to real economy activity. Recurring holdings include companies exposed to:

• Mining services
• Infrastructure build-out
• Construction materials
• Industrial technology

Stocks such as Codan (ASX: CDA) and Monadelphous (ASX: MND) appear across multiple reports. 

These businesses share similar characteristics. They generate tangible earnings and they convert profit into cash. They operate with strong balance sheets. They benefit from capital expenditure cycles rather than consumer confidence.

There is a clear preference for businesses that execute today, not for those that promise tomorrow.

Wealth platforms over major banks

Interestingly, financial exposure in these portfolios is not concentrated in the major banks. Instead, managers are favouring platform businesses and wealth infrastructure providers. Names mentioned include:

• Generation Development Group (ASX: GDG)
• HUB24 (ASX: HUB)
• EQT Holdings (ASX: EQT)

These companies act as toll roads on savings and retirement flows. They offer structural growth without heavy balance sheet risk. 

In a market that appears increasingly selective, this type of business model is attractive.

Selective technology after the AI rotation

Almost every report referenced artificial intelligence in some way. Several managers explicitly noted capital rotating out of small-cap growth and industrial names into resources. At the same time, scepticism around SaaS durability has intensified.

Yet the tone is not uniformly negative. Managers are becoming increasingly selective in identifying future winners. The indiscriminate sell-off in parts of technology has created valuation opportunities for patient capital.

The message is nuanced. These top performers are not reflexively growth or value. They are opportunistic.

Where managers are converging - the 10 ASX stocks with multiple mentions

Note: As usual, the stocks below are not recommendations. Always do your own research. Past performance is not a reliable indicator of future return. 

#1 - Genesis Minerals (ASX: GMD)

Either in the top five holdings or discussed bullishly in three reports, Genesis is engaged in gold mining, project development and exploration activities in Western Australia.

Of the 12 brokers that cover GMD, eight are BUY, one is outperform, two are neutral, one is underperform.

In a recent wire published by my colleague Vishal Teckchandani, Ten Cap's Jun Bei Liu discussed GMD as one of her preferred gold exposure, describing the company as;

“Transitioning into a higher-quality producer with improving scale and earnings leverage.” 

#2 - Tuas (ASX: TUA)

Either in the top five holdings or discussed bullishly in three reports, Tuas conducts its operations through its investment in Simba, a company engaged in owning and operating a mobile network and delivering telecommunications services in Singapore.

Of the one broker that covers TUA, the rating is BUY.

On a recent episode of Buy Hold Sell, Wilson Asset Management's Anna Milne said the following about Tuas; 

"I would say it's under the radar because it's not an Australian household name like Telstra or TPG Vodafone. And it actually spun out during the TPG Vodafone merger in 2020. So it has been around about five years on the market and it's a Singaporean challenger telco. It's gone from strength to strength over the last five years, but we think it's really getting its next leg of growth through its recent acquisition of M1".

#3 - Bellevue Gold (ASX: BGL)

Either in the top five holdings or discussed bullishly in two reports, Bellevue is another gold miner based in WA. 

Of the 10 brokers that cover BGL, seven rate it a BUY, one is outperform, two are neutral

In a commodities feature I recently wrote, my guest, Acorn's Rick Squire (whose note was featured in this analysis), said that BGL is the clearest example of his “deleveraging” and execution framework. Bellevue is still ramping and not yet steady state, which is precisely why he sees upside if it executes: 

“They're trying to ramp up their production, they're on that ramp up phase.” 

The risk, in his words, is operational: “No, it's mainly operational - are they going to hit their forecast?”

#4 - Capricorn Metals (ASX: CMM)

Capricorn Metals is an Australian-based gold producer headquartered in Perth, Western Australia. The Company operates within two project areas within Western Australia: The Karlawinda Gold Project and The Mt Gibson Gold Project.

Of the 8 brokers that cover CMM, six rate it BUY, one outperform, one neutral.

In a wire I put together late last year, CMM was a preferred exposure for Barrenjoey, whilst Future Generation also had it as a preferred name in December. 

#5 - Codan (ASX: CDA)

Codan designs, develops, manufactures and sells communications equipment and solutions, and metal detection equipment.

Of the 6 brokers that cover CDA, two rate it buy, three NEUTRAL, 1 sell.

Codan featured as one of the top growth stocks screened by Carl Capolingua and I in January this year. Canaccord reiterated its BUY rating on what it described as the “golden monster”, pointing to accelerating earnings momentum across metal detection and defence.

The broker highlighted gold detector demand continuing to track the gold price closely, while also flagging defence as a growing structural tailwind amid rising global military budgets. Importantly, Canaccord noted its valuation does not factor in potential M&A, which could provide additional upside beyond its current target.

“If we assumed a $400m acquisition priced on 10x EBITDA, it would be low double-digit EPS accretive to CDA's FY26 pro-forma earnings, would leave ND/EBITDA manageable at 1.4x, and if it translated to being valued by the market at half CDA's current PE multiple, it could add over $2 per share to the share price," Canaccord says.

#6 - Generation Development Group (ASX: GDG)

Generation Development Group provides investment-linked and life insurance products, funds management services and investment research, ratings, and portfolio services through Lonsec Holdings Pty Ltd.

Of the 7 brokers that cover GDG, six rate it BUY, one neutral.

On a 7 November episode of Buy Hold Sell, Shaun Weick from Wilson Asset Management said the following about GDG, respectively:

"So, we're still a buy. We rate Grant Hackett management extremely highly there. The business has great leverage to water effectively strong structural trail wins across both their investment bonds and also their managed accounts business through Evidentia. The market was getting a little bit concerned around delays in the awarding of a large mandate within the Evidentia business. But yeah, the feedback that we're getting across the industry suggests that that's likely to land soon. And the delay is really driven by the fact that it's been upsized, the size of the mandate, which is actually a positive".

#7 - GemLife (ASX: GLF)

GemLife Communities provides resort-style living for homeowners aged 50 and over, designed to support an active and socially engaged lifestyle. The company's portfolio comprises 32 Communities and Projects and 9,836 Homes and Sites.

Of the 5 brokers that cover GLF, two rate it BUY, one outperform and two neutral.

On a recent episode of Buy Hold Sell, Firetrail's Blake Henricks said the following of GLF;

"The third thing that makes this business unique and a really attractive investment opportunity is they continue to own the land in the long term. So if you go and move into a GemLife, you'll pay $700,000 for the house on top and you'll be paying about $200 a week on rent for the land.

For GemLife today, they've got 1,800 houses already built out and collecting rent on the land. The great news is they've got a pipeline of 10,000. This business is going to get a lot bigger over the next few years".

#8 - NexGen (ASX: NXG)

NexGen Energy is a Canadian company focused on delivering clean energy fuel for the future. The Company's flagship Rook I Project is being optimally developed into a low-cost producing uranium mine globally, incorporating the elite environmental and social governance standards.

Of the 16 brokers that cover NXG, 14 rate it BUY, one outperform and one neutral.

In a recent commodities wire by Livewire's Anna Dadic, Tribeca's Guy Keller said the following of NXG: 

“NexGen has an extraordinary asset and continues to drill phenomenal results, but the market hasn’t rewarded it yet”.

#9 - Paladin (ASX: PDN)

Paladin Energy is a uranium production and exploration company with projects in Australia, Canada, and Africa, including the Langer Heinrich Mine in Namibia.

Of the 13 brokers that cover PDN, five rate it BUY, four neutral, four underperform.

After a difficult restart phase, Tribeca's Guy Keller reports that investors are gaining confidence that operational issues are being addressed. 

“Paladin clearing its operational issues has been important,” he said.

#10 - Zip Co (ASX: ZIP)

Zip Co is engaged in digital retail finance, personal finance and payments industry. Established in 2013, the Group is headquartered in Sydney, Australia with operations providing services in Australia, New Zealand (together ANZ) and the United States of America (USA).

Of the 11 brokers that cover ZIP, nine rate it BUY, one outperform and one neutral. 

In this wire, Ausbil's David Lloyd discussed ZIP being a winner from a strong US consumer. 

What this means right now

The best performing Australian equity funds of late are playing in the following areas: 

• Small-cap resources
• Energy security and electrification
• Domestic industrial earnings
• Structural wealth growth

That combination has been where alpha has lived. The bigger question is whether this positioning becomes crowded or continues to deliver.

If gold remains firm, uranium continues to gain policy support, and domestic capex holds up, the small-cap renaissance could extend well into 2026. Equally, if those tailwinds fade, dispersion will widen, and stock selection will matter even more.