ASG Group (ASZ) is an IT managed services provider, with clients ranging from large corporates to Federal and State government departments. Managing Director Geoff Lewis in 2012 recognised early the potential disruptive threat from the introduction of cloud services as customers began to move their IT infrastructure into the cloud. Taking the bold decision to move early, Geoff and his team moved quickly to invest and build out a highly competitive cloud offering ahead of their competitors. This early vision and investment culminated this month in a $1.63 per share offer for the Company from Japan's Nomura Research Institute, a +38% premium to the 3-month VWAP. This has been a great result for shareholders (including the Ophir Opportunities Fund) and highlights what Ophir looks for early in an investment: (1) an unloved and under-researched company; (2) a structural growth story which can compound returns over a number of years; (3) quality management; and (4) the capacity for earnings multiple expansion as the market rewards the business for that structural growth. Read more in the Ophir September Monthly newsletter attached.
Andrew has over 15 years’ experience in portfolio management of listed companies, stockbroking and economic analysis. Prior to co-founding Ophir, Andrew worked from 2007 to 2011 as a portfolio manager at Paradice Investment Management.