| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 12.3% | - | - |
The 1851 Emerging Companies Fund declined 10.0% in March 2026, outperforming the Small Ordinaries Index which fell 11.0% amid Middle East war impacts on global energy markets. Key contributors included NBN reseller Superloop which continued rallying post-results as pricing competition concerns eased, and defense contractor Duratec which gained 21% after confirming significant AUKUS defense spending opportunities over 2-5 years. Main detractors were financial stocks MA Financial and L1 Group, hit by global financial sector sell-off and private credit redemption concerns, plus infant retailer Baby Bunting which fell 30% on interest rate fears despite successful store transformation. The Australian small cap sector now trades at 14.5x forward earnings, a 15% discount to ten-year averages. With 12% cash weighting and liquid portfolio, the team plans to meet 100+ companies next month to capitalize on volatility. Historical drawdowns have created opportunities that became top performers, positioning the fund well as economic outlook improves following hoped-for Middle East resolution.
Australian small cap opportunities emerging from market volatility with selective stock picking in undervalued companies trading at discount to historical averages.
Markets await hopefully speedy resolution to Middle Eastern hostilities. Fund has seen several short term drawdowns since inception and historically these have presented single stock opportunities which have become some of the Fund's best performers through time. Team is well positioned to capitalise on volatility as economic outlook eventually improves.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 30 2026 | 2026 Q1 | BBN.AX, DUR.AX, LGL.AX, MAF.AX, SLC.AX | Australia, defense, energy, small caps, volatility | - | Australian small cap fund outperformed during March volatility driven by Middle East war impacts. Defense contractor Duratec gained on AUKUS opportunities while financials suffered from sector-wide sell-off. Small caps now trade at 15% discount to historical averages. Fund maintains 12% cash and liquid portfolio to capitalize on emerging opportunities as volatility creates attractive entry points. |
| Dec 31 2025 | 2025 Q4 | ABB.AX, CKF.AX, COB.AX, COG.AX, FLT.AX, IRE.AX, MAF.AX, MAH.AX, PFP.AX | Australia, gold, industrials, Resources, small caps, value | - | The Fund delivered strong outperformance despite challenging conditions for small industrials, benefiting from selective stock picking including Cobram Estate's game-changing acquisition. With gold in bubble territory and competing monetary policy forces ahead, the Fund maintains defensive positioning with 11% cash while seeking to capitalize on market volatility through superior valuation discipline. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Defense SpendingMining and defense contractor Duratec held an investor day confirming significant opportunities presented by the AUKUS defense spend across the next 2-5 years. |
AUKUS Defense Contractors |
OilWar in the Middle East caused shock to global energy outlook with select group of energy stocks benefitting from elevated oil prices, though markets await speedy resolution to re-open energy markets. |
Energy Geopolitical Prices | |
GoldGold retreated heavily with global benchmark exchange traded fund declining 21% in March, underlining how fundamentals and momentum for the precious metal had become dislocated in the past 12 months. |
Precious Metals Safe Haven ETF | |
| 2025 Q4 |
GoldGold delivered its best annual return since 1979, driving the Small Resources index to a 45.3% increase in the December half. The manager notes gold has entered bubble territory and expects this to influence global equity markets, particularly given the precious metal's exceptional performance. |
Gold Precious Metals Resources Bubble |
TravelFlight Centre rallied 11% following the emergence of significant challenges with a major competitor. The fund holds Flight Centre as a top 5 position, indicating confidence in the travel business despite competitive pressures in the industry. |
Travel Airlines Competition | |
Mining ServicesMacmahon Holdings gained 15% after renewing a key Queensland resources contract and announcing new wins in iron ore and renewables markets. This demonstrates strength in the mining contractor sector and diversification into renewable energy projects. |
Mining Contractors Iron Ore Renewables |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| SLC.AX | Leading NBN reseller Superloop (+10%) continued its rally post results with the market incrementally less concerned with pricing competition from larger incumbents |
| DUR.AX | mining and defence contractor Duratec (+21%) held an investor day confirming significant opportunities presented by the AUKUS defence spend across the next 2-5 years |
| MAF.AX | diversified lender and fund manager MA Financial (-24%) was impacted by a global sell-off in financial stocks and concerns around private credit fund redemptions at US peers |
| LGL.AX | fund manager L1 Group (-21%) suffered from the same apathy to financials, despite successfully raising ~A$1bn for a new product during the month |
| BBN.AX | leading infant retailer Baby Bunting (-30%) fell on interest rate hike concerns with seemingly no allowances made for the significant (and successful) store transformation process underway |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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