Arden Jennings, Co-Portfolio Manager of the Ausbil MicroCap Fund, says the majority of his time is spent on 'bottom up' analysis of companies outside the ASX200. The Ausbil Investment Management approach is described as 'style neutral' - which means they can invest wherever they find the best opportunities. Jennings says they're ideal investment is a company with the potential to upgrade earnings. In this short video he shares a recent portfolio addition that he thinks meets this criteria.
"From a top down point of view, it’s really exposed to the infrastructure thematic along the east coast of Australia. It also has some mining exposure as well through it's drill and blast."
Currently trading on a 10x PE for next year and with directors buying substantial amounts of stock on market, Jennings argues that this company looks "undiscovered, under researched and under owned."
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