Melbourne-based Datt Capital’s Absolute Return Fund has been outperforming Australia’s best investors. Datt Capital is a funds management firm that invests in ASX-listed stocks. Its flagship fund holds up to 20 stocks and has consistently delivered positive returns.
The Absolute Return Fund has averaged 20.4 per cent per annum net of fees over the past seven years, ranking it as the best-performing long-only Australian equity fund in its peer group, according to Fund Monitors. Over the past year, the fund returned 33 per cent, increasing funds under management to $120 million. Instead of following the crowd into popular ASX stocks, Datt has focused on unloved stocks at low prices, like Monash IVF. This contrarian approach has proved successful for the fund.
One of Datt Capital’s key positions is in Kinatico, a compliance and workforce screening company. The firm also holds a stake in hotel booking technology platform SiteMinder. The firm also took a punt in WiseTech Global earlier this year after a series of scandals involving its billionaire founder Richard White triggered a slump in its share price, but the firm sold the stock after it felt WiseTech hadn’t quite nailed a clear road map going forward.
In October 2023, Datt Capital launched a dedicated Small Companies Fund, which has also delivered strong gains. The strategy returned 44 per cent in the year through October, more than double the S&P/ASX Small Ordinaries Index’s gain of 22.8 per cent. Since its inception, the fund has returned an average of 34.6 per cent each year.
