The market is starting to reward management teams with an eye for growth

The market is starting to reward management teams with an eye for growth. A key feature in recent times has been a move by Australian corporations to start investing for growth. Having hoarded cash since the GFC company balance sheets are strong and whilst returning excess capital to shareholders has been popular management teams are now turning their focus to growth. Major acquisitions were frowned upon 12 months ago, however the market is starting to reward management teams that are deploying capital into growth opportunities. Mayne Pharma (+55% in February) and Steadfast Group (+22% from placement price) both made transformational acquisitions that have been received well and speak to the markets renewed interest in growth.