I've often mentioned that retail investors can find hidden gems in the share market by tracking what the top performing fund managers are investing in – particularly in the small cap space.
One fund manager I have a lot of respect for is New Zealand's Pie Funds. Performance of Pie's several funds has been phenomenal – as an example the Pie Emerging Fund is up 177.6% since April 2013 – or 37% annualised – after fees.
Here are four companies that Pie holds – some in a number of its funds.
Gentrack Group Ltd (ASX:GTK) develops billing software for utilities and airports in New Zealand, Australia and the UK. The company has had a chequered history since listing in 2014, but appears to be on the comeback trail. At its most recent half-year result, Gentrack saw revenues up 26% over the previous year. And despite earning 22% of revenues from the UK, the critical nature of the company's software means the company is unlikely to be affected by Brexit dramas. Gentrack has a market cap of $187 million.
Vista Group International Ltd (ASX: VGL) develops and sells software for the film industry, including cinema management customer analytics, business intelligence and film distribution. Cinema software is installed in more than 60 countries worldwide, and management estimates that more than 1 billion tickets are processed every year through Vista Cinema.
Vista has a market cap of $442 million and expects to begin paying dividends (likely unfranked) from early next year.
Eureka Group Holdings Ltd (ASX: EGH) is quietly going about its business of acquiring retirement and seniors villages (mostly with relocatable homes)– providing a cheaper alternative to the big retirement villages. Growth comes from acquisitions in a fragmented industry, the ability to develop its own villages or expand existing ones, increasing rental rates and occupancy as well as offering increased government-funded services to residents.
As a result, revenues and earnings are growing strongly, but with a market cap of $174 million is still under the radar of most brokers and analysts. Just 2 analysts cover the company.
MotorCycle Holdings Ltd (ASX: MTO) listed on the ASX in April at an offer price of $2.00. The share price is currently $2.75, but could still be cheap. As you might have guessed, MotorCycle Holdings sells motorcycles and is Australia's largest dealership operator with 34 franchises operating from 24 locations. Revenues and net profit appear to be growing nicely – and investors are being offered a decent price for a company with plenty of potential growth ahead. The company has a market cap of just over $100 million and is not covered by analysts as yet.
