Small Caps

Back in February, Breville Group’s (ASX:BRG) HY24 results divided the investment community. Despite improved gross margins and efficient cost control measures, revenue fell slightly short of consensus expectations, prompting some analysts to suggest the company should have engaged in more promotional (read: discounting) activity to drive sales. Of course, strategically, this can weaken a brand and its long-term value.  continue…

by Roger Montgomery Posted in Companies, Small Caps.

• save this article
• POSTED IN Companies, Small Caps

In this week’s video insight, I discuss the Montgomery Small Companies Fund (the Fund), managed by Gary Rollo and Dominic Rose. The Fund achieved a remarkable return of 21.4 per cent in fiscal 2024, outperforming its index by 12 per cent on an after-expense basis. Over the nearly five-year period from September 2019 to June 2024, it has consistently beaten the benchmark by over 5.5 per cent per annum. Notable performers in the portfolio include Life360 (ASX:360), Hub24 (ASX:HUB), and Megaport (ASX:MP1). Additionally, I explore the current returns of small caps versus large caps.  continue…

by David Buckland Posted in Small Caps, Video Insights.

• save this article
• POSTED IN Small Caps, Video Insights

Patience is a virtue in the investment world. It can take two to three years, or even longer, for sentiment to shift the full 180 degrees from bearish to unbridled optimism. This is because scepticism, an uneven distribution of information, and inertia ensure the path to enthusiasm is not instant but takes time. This slow shift is a normal part of the investment and market narrative, and understanding this can bring a sense of reassurance and calm to investors. continue…

by Roger Montgomery Posted in Editor's Pick, Small Caps.

• save this article
• POSTED IN Editor's Pick, Small Caps

I joined Adam Keily on the ‘Equity Mates’ podcast to discuss eight small-cap stocks, share my insights on their performance and answer whether I would buy or sell them. In this episode, we delve into the factors influencing each company providing an analysis of their current and future potential. Tune in to discover which stocks I am currently optimistic about and the rationale behind my perspectives. 
continue…

by Gary Rollo Posted in Podcast Channel, Small Caps.

• save this article
• POSTED IN Podcast Channel, Small Caps

One of the questions we get asked often is about the size of the companies that we can invest in with the Montgomery Small Companies Fund. So, I thought we would take a moment to have a look at the S&P ASX Small Ordinaries Index so we can understand some of the names in the market that could form part of our fund and investment universe.  continue…

by Michael Gollagher Posted in Small Caps.

• save this article
• POSTED IN Small Caps

In this interview, Richard Hemming and I discussed the promising landscape of small cap investments, highlighting the recent, strong performance of the Montgomery Small Companies Fund. I shared insights on the fund’s strategic positioning and optimistic outlook despite market volatility, emphasising an overweight in growth sectors like technology and consumer discretionary. I also discussed the potential for Australian tech firms and consumer retail strategies, explaining how the economic conditions influence market dynamics. continue…

by Roger Montgomery Posted in On the Internet, Small Caps.

• READ ONLINE
• save this article
• POSTED IN On the Internet, Small Caps

Roger joined Alec Renehan and Bryce Leske on the Equity Mates Investing Podcast to discuss his current view on the market and opportunities for small caps and private credit. This episode also covers what’s next for interest rates, why now is the time to deploy cash, Roger’s investment philosophy and stock picking process and five stock stories. continue…

by Roger Montgomery Posted in Editor's Pick, Podcast Channel, Small Caps.

• save this article
• POSTED IN Editor's Pick, Podcast Channel, Small Caps

In this week’s video insight, I delve into the promising realm of small cap companies for 2024, a sector where I’ve maintained a bullish stance since November 2022. The Small Ordinaries Index and the S&P600 Small Cap Index have shown noteworthy gains, underscoring the potential that these companies hold in a recovering economy. As global economic indicators signal a gradual improvement and the potential for a disinflationary boom, the stage is set for innovative small caps to thrive, especially with interest rates poised for a cut.  continue…

by Roger Montgomery Posted in Small Caps, Video Insights.

• save this article
• POSTED IN Small Caps, Video Insights

Since May last year I have been advocating for investors to consider smaller companies, locally and globally.   

The initial arguments rested on Gavekal Research’s empirical evidence in the late 1970s which said innovative companies with pricing power (of which there is a surfeit among small caps) do well when disinflation (which we see today) meets with positive economic growth (which we also see today).  continue…

by Roger Montgomery Posted in Small Caps.

• save this article
• POSTED IN Small Caps

2023 saw the largest gap emerge between large-cap companies and small caps since the GFC. The question is, will this gap to close in 2024? 

We are optimistic about Australian small caps, anticipating a highly favourable environment and outperformance. That gap offers greater growth than large caps, at relatively more attractive valuations. continue…

by Roger Montgomery Posted in Editor's Pick, Small Caps, Video Insights.

• save this article
• POSTED IN Editor's Pick, Small Caps, Video Insights