Renaissance Asset Management’s Ironbark Renaissance Australian Small Companies Fund has delivered strong returns, driven by contrarian investment strategies. Portfolio manager Dermot Ryan capitalised on the lithium market collapse in 2024 by acquiring a stake in Elevra Lithium when prices were at their lowest. This strategic move paid off as lithium prices rebounded, resulting in substantial gains for the fund.
Elevra Lithium, formed by the merger of Sayona Mining and Piedmont Lithium, is a major producer of raw materials for electric vehicle batteries. Renaissance first invested in Elevra in mid-2024 and increased its holdings as the share price hit $2.50. The fund trimmed its position when the stock reached $10, and it is currently trading at around $6.42 apiece. Renaissance has benefited from a broader surge in commodities, with the ASX’s small-cap resources index rising 73 per cent in 2025.
Ryan’s investment approach focuses on identifying value in overlooked sectors. He also demonstrated shrewd timing with HMC Capital, selling shares before a significant downturn and repurchasing them at a lower price after challenges emerged. Currently, the fund is shifting investments from gold and lithium into mining service providers like Perenti and Macmahon, anticipating increased demand for their services as gold miners expand operations. The fund owns about 55 stocks, with PEXA Group and Macquarie Technology Group among its largest investments.
Over the past year, the $1 billion small companies fund has delivered a 34.8 per cent return after fees, outperforming the S&P/ASX small-cap index by 12 percentage points. Since its launch in 2022, the fund has outpaced the broader market by 4.3 percentage points, earning it a top-tier ranking from Morningstar. Ryan’s strategy prioritises companies with clear pathways to profitability, avoiding speculative ventures and focusing on tangible assets and cash flow potential.
