Small Companies Fund Performance: June 2025

The Datt Capital Small Companies Fund recorded a -1.51% return in June 2025, bringing the Fund’s 12-month return to 24.03% and since inception return to 56.63%. While the month was softer, the Fund continues to show strong outperformance over time compared to the S&P/ASX Small Ordinaries Accumulation Index.

Performance Highlights for June 2025

To summarise:

• Net return: -1.51% in June
• 12-month return: +24.03%
• Since inception (p.a.): +29.24% vs +13.69% benchmark
• Total since inception: +56.63%

This demonstrates the Fund’s ability to generate sustained long-term growth, even when short-term movements are less favourable.

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Navigating June’s Performance

June was marked by an anomalously strong index result during what is typically a weaker seasonal period. Despite this, the Fund’s portfolio remained well-positioned, with 97% of capital deployed across 22 holdings. The top five holdings accounted for 41% of the portfolio, reflecting our conviction-led approach.

The strongest contributions came from long-term core holdings and financial services exposures, reinforcing the value of holding disciplined, strategic positions. By contrast, gold exposures detracted from performance as the sector experienced broad softness. To adapt, the Fund executed a meaningful rotation away from materials, increasing allocations towards strategically important assets acquired at modest valuations across diversified sectors.

Explore our investment philosophy to understand how we approach disciplined small-cap investing.

Market Landscape: Small Caps in Focus

The Australian market continued its upward path in June, with the S&P/ASX 200 rising approximately 1%. However, growing concerns around overvaluation in large-cap stocks highlight the relative attractiveness of small-cap opportunities.

Australia’s economic environment remains resilient, supported by a robust labour market and a proactive monetary policy stance. Further rate cuts are expected, with the next move anticipated in July and potentially more to follow before year-end. For active managers, this backdrop provides a fertile environment, particularly in the small-cap segment where valuation differentials remain significant. For broader insights on the market, visit our latest analysis.

Why the Small Companies Fund Stands Out

The Australian small-cap sector offers one of the widest investment universes in listed markets, often outside the remit of larger institutions. This creates an environment where skilled, research-driven managers can identify mispriced opportunities.

Our Datt Small Companies Fund focuses on:

• Concentrated, high-conviction exposure to 15–25 holdings
• Rigorous primary research and independent analysis
• Alignment with investors, with our principals being among the Fund’s largest investors
• Long-term performance resilience, demonstrated by a 56.63% return since inception

Looking Ahead

Although June posed challenges, the Datt Small Companies Fund remains well positioned for sustained long-term growth. With continued emphasis on resilience, disciplined stock selection, and a diversified portfolio of strategically important assets, we remain confident in delivering strong outcomes for investors.

If you’re seeking access to underappreciated Australian small-cap opportunities through a manager investing alongside you, the Datt Capital Small Companies Fund provides a proven pathway. Contact our today or explore our Fund or more information.