Auscap's Ex-20 Fund targets mid and small cap stocks with long-term growth prospects

Mid-Caps have comfortably been the best play to invest for the past two decades.
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James Marlay

Livewire Markets

One metric that matters most when it comes to investing, according to Tim Carleton from Auscap Asset Management, is earnings growth. In the short term, sentiment and the multiples investors are willing to pay for a stock can create volatility, but earnings will determine long-term company valuations.

Carleton argues that the MidCap 50 is the most attractive part of the ASX to find companies that can deliver attractive revenue growth over the long term. Over the past decade, The ASX MidCap 50 has delivered a compound annual growth rate of 8.4% compared to 2.1% and (3.1%) for the ASX20 and ASX Small Ordinaries.

Auscap Asset Management is launching the Auscap Ex-20 Australian Equities Fund that will invest in a sector-aware and long-only manner, primarily targeting the mid-cap part of the ASX.

In this short video, Tim outlines the rationale for investing in mid-cap stocks, how the new fund will invest and the differences between Auscap’s existing strategy.

Time Stamps

  • 0:00 - Background on Auscap Asset Management
  • 0:56 - The rationale for the Auscap Ex-20 Australian Equities Fund
  • 1:45 - The case for investing outside the ASX20
  • 5:14 - Why mid caps can continue to outperform
  • 6:04 - Key differences with Auscap’s existing fund
  • 7:47 - Performance attribution across sectors
  • 9:00 - Why invest now?

Introducing the Auscap Ex-20 Australian Equities Fund

Auscap Asset Management is launching a new fund that will invest in companies outside the ASX20.

For more information please visit the Auscap Asset Management website

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James Marlay
Co Founder
Livewire Markets

Livewire is Australia’s #1 website for expert investment analysis. We work with leading investment professionals to deliver curated content that helps investors make confident and informed decisions. Safe investing and thanks for reading Livewire.

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