Aussie small cap industrials see ‘most attractive set-up in years’

InvestorDaily

Specialist manager Ellerston Capital believes domestic small cap industrials are entering their “most attractive set-up in years.” According to the firm, a combination of AI infrastructure spending and a deepening national productivity problem has seen a turnaround for the sector which has recently experienced one of their most volatile years in recent memory. The Ellerston Australian Emerging Leaders Strategy, an actively-managed portfolio of 30 to 60 smaller companies identified as the next leaders in their respective industries, returned over 17.1 per cent over the June quarter.  

This meant it outpaced both the S&P/ASX Small Ordinaries Accumulation Index by 13.8 percentage points, and the Small Industrials Index by 8.7 percentage points. For portfolio managers James Barker and Jack Briggs, the quarter marked a turning point not just in performance but in market leadership. “After a year dominated by resources, Small Industrials beat the Small Ordinaries by 5.1 percentage points in the quarter alone,” Barker said. “That rotation matters because it suggests the market is turning back towards fundamentals rather than commodity price momentum.”

The rest of this article can be found at investordaily.com.au.