Australia is experiencing below trend growth. This has not changed the appetite of investors as they continue to chase growth. Chris Stott of Wilson Asset Management explains “a lot of the companies that are growing are in the small to mid cap space, industrial space in particular, companies that are growing at 1½ to 2 times their PE’s and are also on the hunt for acquisitions. So we have certainly seen in the short term, after years of underperformance the small industrials finally have their time in the sun relative to their larger peers.” In this video Stott discusses his view on the long-term prospects for this relative outperformance and also walks investors through the medium term prospects for a stock he likes in this space.
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