A reliable small cap that remains overlooked

Richard Ivers, portfolio manager at Prime Value Asset Management, says that investors get lured towards ‘new and shiny’ opportunities when looking at small caps. This obsession with the ‘next big thing’ can create opportunities for investors with an eye for more companies offering a more stable growth profile.

“People tend to be attracted to the stocks that can provide really exciting and big returns, whereas they underestimate the return potential of businesses that are slow growers.”

Ivers’ philosophy favours owning companies that can steadily compound their returns, which are often overlooked. In this interview, he outlines the case for a $5bn market cap logistics business that has delivered 15% compound earnings per share (EPS) growth over the past ten years, yet still flies under the radar of many investors.

More information about Prime Value

The Prime Value Emerging Opportunities Fund has topped Mercer’s Australian Small Companies (ex-ASX100) survey for the year to 30 June 2020.

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