Boutique Australian equity specialist Datt Capital has recorded outstanding results for its Absolute Return Fund.
The Fund has achieved a 12-month rolling return of +63.01% vs a return of +37.47% for the ASX 200 Total Return Index over the same period; outperforming by +25.54%.
Datt Capital’s Chief Investment Officer and founder Emanuel Datt said the results reflected the potential of a concentrated approach to portfolio construction and the opportunities available to investors from an Australian equity only focus.
“Our fund has a relatively high single stock limit of 15% of the portfolio, meaning we typically back our research and ideas by running a reasonably concentrated portfolio,” Mr Datt said.
“We focus solely on the ASX listed small to mid-cap companies. Recent research by Credit Suisse revealed the Australian share market has delivered greater historic returns than any other since 1900. This truly reflects our view that the Australian market has potential to deliver outstanding results for investors, if they remain active and build a concentrated portfolio.
“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.
“We expect buoyant equity markets to continue for now. Government monetary stimulus continues to be extravagant with liquidity driving the price of alternative assets such as cryptocurrencies and the formation of new asset classes such as NFTs.
“Inflation has become a real issue with prices of commodities and labour costs having increased notably over the last 12 months. Accordingly, investors need to invest in high performing assets to maintain purchasing power and protect wealth in the emerging environment,” Mr Datt said.
Two stocks which Datt Capital holds and which remain in the fund portfolio are Selfwealth Ltd (ASX:SWF) and Dusk Group Ltd (ASX: DSK).
