Tech, turnarounds, and the return of small caps

If you’ve ever wondered how alternatives can complement a core portfolio, or why liquidity isn’t always your friend, this episode delivers plenty of food for thought.

[00:00:40] – Introduction to Episode & Year Review
Steve Johnson opens the episode, reflecting on the 2025 financial year and outlining the agenda, including discussions with Gareth Brown (International fund) and Alex Shevelev (Australian fund).

[00:04:05] – Market Environment & Japan Investments
The conversation shifts to 2025 market conditions, including notable sell-offs in Japan and the US. Gareth discusses how Forager capitalized on these events, with a deep dive into their investment in OBIC Business Consultants and the broader Japanese software sector.

[00:10:55] – European Banking & Dividend Yields
The discussion transitions to European investments, particularly ING and Lloyds banks. Gareth highlights their strong yields and balance sheet improvements, contrasting them with Australian banks and reflecting on Forager's investment approach.

[00:19:31] – Australian Fund Performance with Alex Shevelev
After the break, Alex joins to discuss the Australian fund's impressive 30% return. They talk about sector performance, key tech investments like Catapult and Bravura, and the influence of indices and passive investing.

[00:31:31] – Takeovers & Small-Cap Opportunities
Alex and Steve focus on takeovers (Bigtincan, PointsBet, Johns Lyng) and small-cap stocks such as AMA and Motorcycle Holdings, highlighting how these investments have performed and what’s shaping their future portfolio strategy.

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