Australian fund managers are identifying promising opportunities in the small-cap market, ranging from commodity producers to technology firms poised for growth. Despite recent inflation data suggesting potential interest rate hikes by the Reserve Bank of Australia (RBA), experts remain optimistic about select small-cap investments.
Katie Hudson from Yarra Capital Management highlights Cobram Estate Olives as a top pick, emphasizing its expanding presence in the lucrative US market following the acquisition of California Olive Ranch. Cobram Estate Olives is a major Australian olive oil producer, now strengthening its position in the North American market. The company aims to capitalize on growth opportunities in the United States, which is significantly larger than the Australian market.
Luke Laretive of Seneca Australian Small Companies Fund is focusing on resources, favouring companies like Karoon Energy and Stellar Resources, a tin explorer with a project in Tasmania. James Sioud from Regal’s small companies fund is looking beyond resources, with picks like Cogstate, a neurological-focused contract research group, and Smart Parking, a parking technology company. Cogstate specialises in providing cognitive testing services, while Smart Parking focuses on innovative parking solutions.
Andrew Peros from Ausbil’s small-cap fund is eyeing Wagners Holdings, a cement supplier in south-east Queensland, expecting to benefit from infrastructure projects related to the upcoming Brisbane Olympics. Paul Nojin, from The Super Investor, is backing 4DMedical, a lung imaging software company, anticipating further growth and potential inclusion in the ASX 300.
