Concentrated portfolios crucial for Aussie equity funds

Datt-Capital/australian-equities/equities/

21 April 2021
| By Laura Dew |
image
image
expand image

Holding a concentrated portfolio is crucial, according to Datt Capital, if investors want to maintain risk control in Australian equities.

 

The Datt Capital Absolute Return fund, which invested in Australian small and mid-cap equities, had a single stock limit of 15% which the firm described as being a “reasonably concentrated” portfolio.

 

A concentrated portfolio was important in Australian equities to maintain risk control amid a large universe of stocks and industries.

Chief investment officer, Emanuel Datt, said: “The Datt Capital philosophy can be described as active contrarian investing with an inclination towards growth. We utilise a long-term investment approach that focuses on capital preservation and absolute wealth accumulation, however not at expense of growth.

“We are both highly opportunistic and highly disciplined investors, with a strong emphasis on risk control. The fund is industry and market cap agnostic, investing solely in the best opportunities that provide the best risk-adjusted returns. Whilst risk control is core focus its not achieved by having a widely diversified portfolio.”

He said he expected positive returns for Australian equities would continue as Government stimulus was currently “extravagant” which was helping alternative assets. However, the threat of rising inflation was a problem for investors who needed to maintain purchasing power and protect wealth.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 4 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 5 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 4 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 2 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND