Datt Small Companies Fund Performance – November 2025

Market Overview

The S&P/ASX 200 declined 3% during November and the Small Ordinaries Accumulation Index fell 1.48%. Defensive sectors, including Healthcare and Energy, led gains. Technology and Financials weakened. CPI data came in above expectations and the RBA held cash rates at 3.60%, prompting selling late in the month.

Despite this backdrop, liquidity remained healthy and pricing inefficiencies continued to emerge across small caps. Valuation dispersion between large and small companies persisted, reinforcing the structural opportunity set for skilled stock pickers. M&A activity also increased, supporting sentiment in selected areas of the market.

Performance Snapshot

• 1 month: 3.35%
• 3 months: 6.93%
• 6 months: 20.80%
• 1 year: 46.93%
• Since inception p.a.: 35.13%
• Since inception total: 92.11%

Download full report here. Performance is reported after all fees and expenses. Past performance is not an indicator of future performance.

Portfolio Insights

At month end, the Fund held 86% of capital deployed across 15–25 positions. Healthcare and Energy led performance, reflecting the shift toward stable cash flows and resilient earnings. Technology detracted, driven by sector-wide beta compression.

The Fund remained conservatively positioned. Portfolio exposures were diversified across several sectors, balancing downside protection with high-conviction ideas supported by fundamental strength.

We continued to build positions in select opportunities with strong medium-term potential. The underlying universe remains attractive due to limited research coverage and persistent pricing inefficiencies within the small-cap market.

Why It Matters for Investors

Small caps continue to benefit from valuation support, structural catalysts and increasing corporate activity. For long-term investors, disciplined research and selective positioning remain essential as dispersion widens across the small-cap landscape.

The Fund’s focus on quality, scalability and risk-adjusted return potential enables participation in market recoveries while maintaining alignment with capital preservation principles.

Outlook

We remain constructive on the opportunity set within Australian small companies. The current environment supports bottom-up stock selection, especially across sectors where earnings resilience and operational leverage are improving.

As market volatility persists, we continue to prioritise disciplined portfolio construction and maintain flexibility to allocate toward businesses that show durable fundamentals and clear pathways to long-term value creation.

About the Datt Small Companies Fund

The Fund invests in high-quality companies outside the ASX100 with strong fundamentals, scalable business models and long-term growth potential. Our research-led, conviction-based process focuses on identifying undervalued opportunities often overlooked by the broader market. The Fund aims to outperform the Small Ordinaries Accumulation Index over five years through prudent stock selection and disciplined risk control.

Key details:

• Minimum investment: $50,000
• Management fee: 1.54%
• Performance fee: 20.5% above benchmark
• Benchmark: S&P/ASX Small Ordinaries Accumulation Index
• Custodian: HSBC
• Auditor: Ernst & Young
• Trustee: Fundhost

For more information, contact Daniel Liptak at daniel@datt.com.au or 0419 004 524.