Fund update | April 2017
The OC Premium Small Companies Fund and the OC Dynamic Equity Fund both had a relatively flat month. The Premium Small Companies Fund finished slightly ahead of the S&P/ASX Small Ordinaries Accumulation Index while the OC Dynamic Equity Fund finished slightly behind the index. Both maintain a strong long-term track record delivering investors 12.7% p.a. and 15.6% p.a. over five years, respectively.
The OC Micro-Cap Fund outperformed its respective benchmark during the month but was not immune to the share price falls across the micro-cap companies space, although the negative price action brought with it some compelling investment opportunities that could prove rewarding over the longer term.
Domestic economic conditions remain mixed
We attended a conference held by Macquarie in early May which allowed us to meet over 40 Australian small-cap companies, in addition to the extensive company contact we have had during our interstate and international road trips over the last month.
Common themes that emerged were a softness in retail conditions, Sydney and Melbourne's overheated property markets, political uncertainty and currency weakness. On a more positive note, companies called out ongoing strength in domestic tourism, an improved outlook for infrastructure and a stronger global growth outlook.
Welcome Daniel Stein
We'd like to welcome Daniel Stein to OC. Daniel has joined us as an Analyst and brings with him buy-side experience from Altair Asset Management and corporate finance experience from Wilsons and Azure. He is a passionate small-caps investor and complements the team's smaller companies investment capabilities.
View the April 2017 reports