Small Caps with Golden Upside: Emanuel Datt on Ausbiz

Where We See Value in Small Caps

Australian small caps continue to represent one of the most compelling investment opportunities in the market today. Our Principal, Emanuel Datt, joined Ausbiz to share why this segment remains undervalued compared to large cap and why the outlook for select small companies is particularly attractive.

Why Small Caps Remain Undervalued

In the interview, Emanuel explained that small caps still trade at a discount relative to large caps, a valuation gap that has persisted for years. Historically, these gaps tend to close over time, which presents significant potential for investors who are prepared to take a two to three year view.

"The valuation gap between small caps and large caps has persisted for years. That gap still exists today, creating very attractive opportunities for long-term investors." - says Emanuel.

Gold Producers in Focus

One of the clearest opportunities highlighted was within Australian gold producers. Emanuel noted that producers are trading on low multiples compared to their larger peers, offering investors exposure at attractive valuations.

The sector also benefits from strong commodity price support and favourable currency dynamics, which continue to underpin earnings strength and investor demand.

Importantly, projects that move from development into production typically “de-risk” as they begin generating consistent output. This transition often leads to valuation re-ratings over time, creating further upside potential for investors.

"Australian gold producers remain compelling, trading at low multiples while benefiting from both strong commodity prices and a favourable currency dynamic." - says Emanuel.

Watch the full Ausbiz interview below or via Ausbiz's latest blog "Small caps with golden upside".

Positioning Through the Datt Small Companies Fund

The Datt Small Companies Fund is specifically designed to capture opportunities in undervalued Australian small caps. By focusing on companies with strong fundamentals, attractive growth potential, and robust risk management, the Fund seeks to deliver differentiated returns for investors.

Our disciplined investment process combines deep research, independent thinking, and careful capital allocation. This approach allows us to identify overlooked investment opportunities across sectors, including those benefitting from long-term structural trends like commodities, healthcare, and technology.

Learn More

Australian small companies remain an important source of diversification and return potential within investor portfolios. If you want to learn more about the Small Companies Fund, visit the Fund Page or contact our Head of Distribution, Daniel Liptak, on 0419 004 524 or via email at daniel@datt.com.au.