Buy Hold Sell: Finding Value in Small Caps with Emanuel Datt

The Overview

Emanuel Datt, CIO of Datt Capital, recently appeared on Livewire’s Buy Hold Sell to share his views on opportunities in the Australian equity market. In this episode, Emanuel joined other leading fund managers to discuss the outlook for small caps, where market dislocation is creating value, and how investors should think about positioning.

Note: This episode of Buy Hold Sell was filmed in October 2024. The company recommendations below reflect market conditions and valuations at that time. You can watch the full episode below or continue reading for the discussion summary.

Key Insights from the Episode

• Small Cap Opportunities: Emanuel highlighted the divergence between large and small companies, pointing to areas where investors could find overlooked value.
• Importance of Research: He stressed that disciplined research and real-world observation are essential to identifying companies with durable, long-term growth drivers.
• Conviction in Active Management: With higher rates and selective liquidity, conviction-led fund managers are better placed to uncover opportunities that the broader market may be missing.

Datt Capital’s Small Companies Fund

Our Datt Small Companies Fund investment approach focuses on identifying undervalued companies in Australia outside the ASX100 with strong fundamentals and scalable growth drivers.

Learn more about our approach through the Datt Small Companies Fund page or contact our Head of Distribution, Daniel Liptak, via email daniel@datt.com.au or phone at 0419 004 524.

Frequently Asked Questions

What was discussed in Emanuel Datt’s Buy Hold Sell appearance?

Emanuel discussed opportunities emerging in Australian small caps, where valuation dislocations have created attractive entry points, and shared how disciplined research supports long-term investment outcomes.

Why are small caps attracting attention in the current market?

Small caps have lagged large companies despite solid fundamentals in select businesses. This divergence has created pockets of value where earnings quality and long-term growth are not fully reflected in prices.

What does Datt Capital look for in small cap investments?

The focus is on undervalued Australian companies outside the ASX100 with strong balance sheets, durable competitive positions, and scalable growth drivers supported by primary research.

Why is active management important in this environment?

With higher interest rates and more selective liquidity, active managers with conviction and research depth are better positioned to identify mispriced opportunities rather than relying on broad market exposure.

Is the information in this episode still relevant?

The episode was filmed in October 2024 and reflects market conditions at that time. While company-specific views may change, the investment principles and research framework discussed remain central to Datt Capital’s approach.