So far in April the ASX All Ordinaries has fallen about 2 per cent, which is hardly surprising. After all, the market is up 6.6 per cent since late December when the European Central Bank opened its purse strings and decided that everything including a bus ticket was collateral.
As for our big performers, (ASX code)“SXE” is the word for Southern Cross Electrical, which is up over 81 cent since we picked it. No less than five our 28 stock tips are up more than 30 per cent, and 11 are more than 20 per cent up.
One of the nation’s top pickers who will appear in a future issue is Adrian Di Mattina, the portfolio manager of the top performing SG Hiscock small caps fund sums up why investing in small caps can be very profitable:
“If you are going fishing for stock investment opportunities, you want to be in the part of the river where there are plenty of fish and not many fishermen.”
Di Mattina points out that there are over 150 dedicated Australian equity funds and more than 50 stock brokers. The research primarily covers the 100 largest ASX stocks. Says Di Mattina:
“It should be pretty obvious that you have more chances of success investing in the small company sector area where there is less competition and more opportunities.”
Radar couldn’t have put it better.
In our next issue we interview one of the big hitters in Small Caps world, Ben Griffiths of the Eley Griffiths fund, which manages over $1 billion. We also look at two exciting stocks – one a promising world beater on the technology scene; while the other is one of the most promising oil and gas explorers on the ASX. All this and the proverbial “much much more”.