Fund manager Cyan investment management has produced a remarkable return in the 2016 financial year, delivering a total return to unitholders of 41.4% – compared to the All Ordinaries (Index: AORD) (ASX: XAO) index’s return of just 2%.
Focusing mostly on smaller cap companies with market caps under $1 billion has allowed this fairly new fund manager to thrash the market. Since inception in July 2014, the Cyan C3G Fund has returned 72.9% against the index’s 4%. Even the Small Industrials Accumulation Index’s 16.8% has been left far behind.
Speaking to Fairfax Media, Mr Fergie says Skydive the Beach has been one of the fund’s best performers. The company runs several skydiving operations in both Australia and New Zealand in iconic spots like Byron Bay and New Zealand’s Wanaka (close to the snow fields and Queenstown).
As Mr Fergie says, “There’s massive organic growth in it because of the whole social media side of things. It’s the same reason why people line up for an hour outside a hip cafe for ‘truffled mushrooms with edible flowers on some sort of quinoa toast’ – they want experiences, and they want stuff they can tell people about.”
As for the freelancing website Freelancer, Mr Fergie says the company could ‘easily be a $5 billion company.’
While the company has yet to produce a profit, it also doesn’t lose much money – and probably won’t be long before it does produce its maiden profit.
Another company that Mr Fergie is positive on is Afterpay Holdings. Afterpay allows consumers to buy a product now and pay for it at a later stage – without upfront fees or interest. The company has experienced strong growth, resulting in its share price soaring from its IPO price of $1.00 in May 2016 to $2.60 currently.
The C3G fund also topped up its holdings in baby formula producer Bellamy’s Australia Ltd (ASX: BAL) in June, when the share price fell below $11. It’s currently at $14.13.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
The Motley Fool Australia has a position in Bellamy's Australia. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- Why PWR Holdings Ltd could see its share price rise from here – July 21, 2017 12:11pm
- Fortescue Metals Group Limited share price sinks on native title decision – July 20, 2017 4:23pm
- 5 overlooked finance shares to add to your watchlist – July 20, 2017 2:33pm