One small cap with market leading potential

Spheria Asset Management

One attraction of investing small caps is the potential to uncover one of those rare gems that start small and go on to become big caps. Stocks like Magellan, Fortescue and SEEK spring to mind. Livewire asked Marcus Burns from Spheria for one company he thinks has market-leading potential.

Class (ASX:CL1)

At ~$360 million market cap, Class (ASX:CL1) is only a small company today, but Marcus Burns from Spheria Asset Management says this cloud-based software provider could be an industry leader in the years to come.

Class provides administration software for the growing self-managed superannuation sector. As adoption of cloud-based technologies are increasing, Class has captured significant market share from its leading competitor. Burns says that over the medium term, Class could capture up to 50% of the market.

Looking for professionally managed exposure to emerging companies?

Spheria Emerging Companies Limited (ASX:SEC) is a limited opportunity to invest in an actively managed , Australian and New Zealand portfolio, designed for investors seeking capital growth and portfolio diversification.

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