16 Jul 2015
Full article featured here: Under the Radar – Cyan June 2015
Under the Radar Report speaks to a small cap fund which has been going for less than a year, but has already wracked up a return of 22% after fees. We think that the pair’s common sense philosophy will keep delivering.
LET’S TALK STOCKS
It is refreshing to see two fund mangers who don’t harp on about their process but talk about lesser known stocks and have been walking the walk in a relatively short time.
Names such as AMA Group (AMA), Lindsay Australia (LAU), Opus Group (OPG), Lovisa (LOV) were mentioned, along side better known stocks including Vita Group (VTG), Capitol Health (CAJ), Bellamy’s Australia (BAL) and M2 Communications (MTU).
Cyan Investment Management’s fund was kicked off in July 2014 by ex-National Asset Management fund manager Dean Fergie and by ex-broking analyst Graeme Carson.
RETURN ON EQUITY AND RE-INVESTMENT OF EARNINGS
The fund does not have market cap limitations, but its current holdings in 20 stocks tend to be at the smaller end of the spectrum. Carson sums up the pair’s philosophy:
“We find value in smaller industrial companies that we understand and can value. Ideally, these companies have good return on capital employed and are re-investing their earnings.
“There is no point having a good return on equity if you’re not investing in your own company. You won’t get that compounding earnings growth, which is the key to any small cap success.”
Full article featured here: Under the Radar – Cyan June 2015