Shaun Weick, deputy portfolio manager of WAM Capital’s small-caps fund, believes that market volatility presents opportunities for active managers. WAM Capital is a Sydney-based firm that oversees approximately $6 billion in assets. The firm invests in undervalued growth companies with a focus on generating strong risk-adjusted returns for its shareholders.
Weick notes that as rate expectations peaked and an easing cycle began in late 2024, smaller companies have outperformed by around 17 per cent this year. WAM Capital has been taking profits in speculative and US consumer-leveraged stocks, while increasing positions in domestic cyclicals such as housing, retail, and mining and industrial services companies where earnings momentum is improving. The firm also sees potential in companies undertaking earnings accretive acquisitions.
One stock with significant near-term upside, according to Weick, is Mayfield Group, which specialises in electrical and telecommunications infrastructure products and services. He anticipates 50 per cent to 100 per cent upside in the next 12 months, driven by booming data centre spend, renewable energy, and defence sectors. Another promising, lesser-known stock is Artrya, a disruptive medical technology company using AI for cardiovascular diagnostics. Its Salix platform received FDA approval in August 2025 and has partnered with several major US hospitals.
Weick’s investment approach centres on understanding the company, its stock price, and the factors that will drive its movement, emphasizing the importance of the earnings outlook versus market expectations. He recommends market podcasts like the Real Eisman Playbook, and the High Performance podcast.
