This fundie found Afterpay at $6. Now he’s found his next opportunity

This fundie found Afterpay at $6. Now he’s found his next opportunity

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. 

Datt discusses:

  • the processes and investments that netted the absolute fund such stellar numbers;
  • how he found Afterpay;
  • why he believes now is the time to get into small caps; and
  • the investment opportunity he sees in rare earths. 

Note: this episode was recorded on Tuesday May 16, 2023

Timestamps

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)

Show More

Backward
Play
Forward
1x speed
  • 0.5
  • 1
  • 1.5
  • 2
Other episodes
The next 10 years in ETF growth could be dominated by this asset class

The next 10 years in ETF growth could be dominated by this asset class

If there is any one investment product that has experienced a true boom over the last 10 years, it is exchange-traded funds (ETFs) and exchange-traded products (ETPs) more broadly. 
The number of listed products has increased by 17.5 times in Austral...

37 downloads Rules of Investing Mar 22, 2024
28m
Warryn Robertson’s guide to picking the best infrastructure stocks on the ASX and abroad

Warryn Robertson’s guide to picking the best infrastructure stocks on the ASX and abroad

Warryn Robertson, portfolio manager and analyst at Lazard Asset management, understands the nuances of infrastructure assets like few others in the market. His approach is to find monopoly assets with inflation protected revenues, high margins and re...

44 downloads Rules of Investing Mar 14, 2024
39m
The policy overhaul Shane Oliver would make to secure Australia's fortunes

The policy overhaul Shane Oliver would make to secure Australia's fortunes

"Living Legend", "One of a kind", and "Diamond in the Rough are not terms usually bandied about when describing economists! But these are just a few of the hundreds of messages of support and appreciation that flooded a recent social media post recog...

75 downloads Rules of Investing Mar 01, 2024
46m
Where Soul Patts is investing for long term growth and dividends

Where Soul Patts is investing for long term growth and dividends

If you’re looking for the future blue chips of the ASX then Washington H Soul Pattinson might be worth a closer look. The company has been around for more than a century, has never missed a dividend payment but, for the most part, has flown under inv...

81 downloads Rules of Investing Feb 16, 2024
41m
How Hyperion unearths rare but exceptional growth companies (plus two that pass their filters)

How Hyperion unearths rare but exceptional growth companies (plus two that pass their filters)

The structural forces that saw growth investing rise to the top after the GFC remain. Covid created a blip, but the world is returning to slow growth, low inflation and lower interest rates. That's the perspective of Jason Orthman, the Deputy Chief I...

109 downloads Rules of Investing Feb 02, 2024
45m
How to invest $1 million in 2024

How to invest $1 million in 2024

Each year, Barron's releases a list of Australia's Top 100 Financial Advisers. Pitcher Partners' Charlie Viola and Lipman and Burgon Partners' Paul Burgon have featured high on this list over the years, and both ranked in the top 10 in 2023.
As part...

126 downloads Rules of Investing Jan 08, 2024
29m
The lead indicator for Dion Hershan’s best trades (and two high quality stocks for the ”slow grind” ahead)

The lead indicator for Dion Hershan’s best trades (and two high quality stocks for the ”slow grind” ahead)

Two years ago, on a trip to Perth, Yarra Capita’s Dion Hershan was pitched the case for lithium stocks by his Uber driver. Hershan says it was a cliche moment and a classic example of a ‘ringing the bell’ sign. On the flip side, there are moments whe...

126 downloads Rules of Investing Dec 20, 2023
41m
Ben Griffiths’ small cap playbook as animal spirits awaken

Ben Griffiths’ small cap playbook as animal spirits awaken

The penny has dropped and thanks to a three-letter word from the Federal Reserve's recent interest rate decision ("any"), small caps both in the US and in Australia have started to rocket out of a long slumber. For most of the last 18 months, small c...

140 downloads Rules of Investing Dec 14, 2023
44m
2 killer growth stocks (and why culture is key to successful small caps)

2 killer growth stocks (and why culture is key to successful small caps)

Culture is not something that immediately springs to mind when assessing a company and its prospects for the future.
More often than not, we investors are scouring profit and loss statements, comparing financial ratios and (if we have the time and sk...

387 downloads Rules of Investing Nov 17, 2023
36m
Suggested Stories

Who would have guessed laws required companies to request...

DisinterestedSep 25, 2022
0 mins read

The question of whether abortion should be legal has been...

DanielJun 26, 2022
4 mins read

Four-time major winner Brooks Koepka has also left the PG...

sportislife15Jun 26, 2022
0 mins read

The subsidisation of unreliable “renewable” power is why ...

DisinterestedJun 19, 2022
0 mins read

LIV Golf is off to a good start, whatever the PGA Tour an...

sportislife15Jun 11, 2022
4 mins read

All governments eventually lose power, but the Liberal Pa...

DanielMay 29, 2022
4 mins read