Emanuel was recently interviewed by one of Australia's most popular financial podcasts, Money of Mine, sharing his knowledge of investing in Australian Resources.
CHAPTERS // Timestamps
0:08:18 Datt's macro view
0:12:58 Adages for resource investors to live by
0:13:42 Adage #1
0:16:57 Adage #2
0:19:58 Adage #3
0:23:00 Adage #4
0:27:29 Nickel market's massive change
0:35:47 Lithium market dynamics
0:44:30 Can the coal market re-rate?
0:49:46 The iron ore market
0:55:00 Thoughts on EV adoption & tech advancements
0:57:26 The big risks for WA1 Resources
1:02:33 Adriatic Metals in a critical part of their journey
1:04:21 Global lithium, Metals X, Dreadnaught
1:06:55 Giving some love to gold stocks now
Emanuel Datt, the founder of Datt Capital, shares his plans about the initiation of a new fund focused on small companies. This move aims to leverage the favorable valuations of small caps in comparison to larger ones. Emanuel reveals plans to maintain an inclusive portfolio of 15 to 25 stocks from varied industries with the goal of exceeding the small cap accumulation index. The fund will direct its investments towards stocks offering a high likelihood of substantial capital growth in the long term. His expectation is high that more prominent institutional investors would channel funds to small caps leading to increased liquidity. Emanuel mentions companies like Adriatic Metals (ADT) and Eroad (ERD) which, in his opinion, hold prospects for significant future return.
Emanuel was recently interviewed by the Money of Mine podcast discussing Datt Capital's investment philosophy, portfolio construction, sectors and stocks
0:39 Intro to the interview
4:57 Interview with Emanuel
6:23 Being a Unique & Uncorrelated Fund Manager
12:15 Extracting Value from Twitter
13:40 Getting up the Curve Yourself
16:08 Instinct vs. Intuition
17:14 Not Engaging Management
20:41 Running an Absolute Return Fund
21:45 Being an Activist
24:05 The Macro
25:30 Large Cap vs Small Cap Value Divergence
27:40 Getting compensated for Illiquidity
30:45 Tech vs Resources
34:00 Risks of Holding Coal
36:35 The Rare Earths Outlook
38:52 What to look out for as a WA1 Holder
43:00 Seeing Value in GL1
46:06 Dreadnought’s News on the Horizon
47:18 Adriatic inching toward Production
53:56 Over-rated vs. Under-rated!
Emanuel Datt from Datt Capital sheds light on the impacts of the RBA's second straight hold on cash rates and his views on the trajectory of the stock market. Emanuel expresses his viewpoint on the market's response to the RBA's hold and suggests that the stability could foster confidence and provide a positive outlook for the markets.
He believes more immigration to Australia, potentially around 700,000 new immigrants over the next two years, could stimulate several sectors, including education, health, retail, and real estate.
Emanuel underscores that these new immigrants will aspire for the high Australian standard of living, thereby providing an opportunity for these sectors. When asked about his favored sectors, Emanuel identifies health, retail, and real estate, pointing out his interest in smaller caps due to the large differential in valuations between them and larger cap stocks.
In particular, he mentions companies like Pacific Smiles Group, which dental services, and retail names like Myer and Premier Brands, he sees opportunities in companies capable of passing through price increases due to the elevated inflation environment.
Finally, Emanuel discusses the potential winners and losers of the upcoming reporting season and anticipates an increase in M&A activity across various sectors.
Emanuel was featured as a special guest on the 'Money of Mine' podcast discussing WA1 Resources' recent niobium discovery in the Arunta region of Western Australia.
Emanuel was recently featured on 'The Rules of Investing Podcast' by Livewire Markets.
Investing hasn’t been easy these past few years amid a pandemic, soaring inflation and monetary tightening. The ASX200 did 1.4% in 2020, 17% in 2021 and then -1% last year. Hugely volatile.
But it's in times like this when the cream rises to the top. As most fund managers struggle to match the benchmark, Datt Capital’s Absolute Return fund has returned an enormous 25% per annum over the last three years. It's a staggering performance that most fund managers would give their left arm to get.
In this week's episode of The Rules of Investing, Livewire's David Thornton speaks to Emanuel Datt, founder of Datt Capital. Datt’s modest demeanour belies the rockstar performance he’s generated.
Not one to rest on his laurels, though, he’s about to launch a new small-cap fund that seeks to outperform the Small Ordinaries Index by 5% per annum. While the fund may be new, Datt's experience with small cap stocks certainly isn't - he bought market darling Afterpay at $6, long before it became Australia's largest ever takeover at a cool $39 billion.
1:50 - The man behind Datt Capital
3:20 - Opening up shop
4:30 - Achieving 25% p.a.
7:30 - Rare earths
12:00 - The opportunity in small caps
19:00 - The sectors leading small caps
21:00 - Spotting Afterpay
24:00 - Red flags
27:00 - Finding sustainable companies
30:10 - Inflation can't be understated
31:20 - Winning big with Adriatic Metals (ASX: ADT)
Emanuel was recently interviewed by Alan Kohler for the Eureka Report sharing the rationale behind launching the Datt Small Companies Fund and the opportunity he sees in small caps at this stage of the market cycle
The decline in the valuations of Australian listed small caps of more than 20% on average in calendar year 2022 raises the question for investors on whether the tide is likely to turn in the near future, presenting buying opportunities.
Emanuel Datt, chief investment officer, Datt Capital says: “Small caps present many compelling reasons for investing. These include access to earlier-stage, higher-growth businesses, a broader range of sector opportunities to pick from and an ability to more easily back future trends."
Emanuel was interviewed by The ROI Podcast covering the following topics:
- How Datt Capital has been able to achieve a compound annualized return of 22.89% in the prior 4 years.
- How he is positioning his fund to protect and grow investors' capital despite the expected volatility ahead
- The highest ROI Emanuel has ever achieved - 13x ROI!!
- His highest conviction stock currently, which has 4x'd since his initial investment!
Emanuel shared the investment thesis behind one of the portfolio's core positions, Whitehaven Coal, in this segment