Navigating Volatile Markets: Afterpay & SiteMinder Case Studies

The 2025 market was shaped by volatility and rapid shifts in sentiment. For investors, it highlighted the importance of a disciplined investment philosophy and the ability to stay focused on fundamentals. In such an environment, experienced fund managers who understand valuation, risk, and business quality stand apart.

Emanuel Datt, founder and CIO of Datt Capital, was featured in the Australian Financial Review's Monday Fundie series for his approach to identifying opportunities in uncertain markets. As a leading boutique mutual fund and wholesale investment fund in Melbourne, Datt Capital’s focus on independent research and capital discipline continues to define its results.

Proven Strategy in a Volatile Year

Across managed funds in Australia, market dispersion in 2025 created both challenges and opportunity. Sharp reversals in small and mid-cap stocks punished short-term reactions, rewarding investors who stayed anchored to business fundamentals.

Datt Capital’s approach centres on original research, valuation discipline, and long-term conviction, qualities essential for navigating volatile conditions. This philosophy underpins both its Absolute Return Fund and Small Companies Fund, designed to protect and grow capital regardless of the market cycle.

Case Study: Afterpay at $7

One of Datt Capital’s most recognised early positions was Afterpay, purchased around $7 per share before its broader market recognition and eventual acquisition. The investment reflected a clear focus on structural growth, product adoption, and consumer behaviour shifts rather than short-term market sentiment.

It demonstrated how a disciplined process within Australian investment funds can identify high-growth opportunities ahead of the crowd while maintaining risk control through position sizing and valuation awareness.

Case Study: SiteMinder’s 2025 Recovery

In 2025, Datt Capital added to its position in SiteMinder, a hotel booking and revenue management software provider. The company faced operational challenges that led to significant share price volatility, falling as much as 30 percent during the year.

Rather than avoiding the decline, Datt saw it as an opportunity to back a resilient, mission-critical business with recurring revenue and strong customer retention.

“I know how important and how sticky the customers are and how critical SiteMinder (hotel booking software) becomes to their businesses,” said Emanuel Datt in the AFR.

By year-end, SiteMinder shares had recovered, finishing slightly higher than at the start of the year. This outcome reinforced the value of focusing on fundamentals and avoiding emotional trading decisions during market stress.

Why Investment Philosophy Matters

Periods of volatility separate process from speculation. Managers without a defined investing philosophy tend to react to price movements. In contrast, the best fund managers in Australia rely on repeatable research processes that emphasise business quality, balance sheet strength, and long-term compounding.

For investors evaluating hedge funds in Melbourne or alternative investment funds, understanding a manager’s philosophy is essential. Performance consistency over time comes from discipline, not prediction.

What This Means for Investors

Volatility should not be mistaken for risk. For investors seeking low risk investments in Australia, it is a test of how a manager responds when conditions change. At Datt Capital, our process-driven approach ensures that capital allocation remains disciplined, even when the market overreacts. For those comparing high return investment options or assessing the best investment funds in Australia, consistent decision-making and clear accountability matter most.

About Datt Capital

Datt Capital is an independently owned Australian investment fund manager focused on disciplined research and alignment with investors.

Explore our funds:

• Datt Absolute Return Fund – aiming to deliver strong risk-adjusted returns with less volatility
• Datt Small Companies Fund – targeting growth in undervalued Australian businesses

To learn more about our Funds or explore our investment philosophy, contact Daniel Liptak, Head of Distribution, at daniel@datt.com.au.