If you're looking for ASX growth shares to buy, then it could pay to listen to the team at Hyperion Asset Management.
As of the end of December, the Hyperion Australian Growth Companies Fund has achieved a total return of 20.1% per annum over the last three years. This means the fund is outperforming its benchmark by a solid 6.9%.
I thought I would take a look at some of the shares the fund manager. Here are three in its portfolio:
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Afterpay Ltd (ASX: APT)
This buy now pay later provider is Hyperion Australian Growth Companies Fund's largest holding and accounts for 10% of its portfolio. The fund manager was happy with the company's recent trading update, noting that it grew underlying sales by 112% to A$2.1 billion in November. Hyperion also appears impressed with its referrals to retailers, which were up 147% on the prior corresponding period. It notes that Afterpay generated 35 million leads globally for its merchant partners during the month and 1.2 million in the US on Black Friday alone.
Nanosonics Ltd (ASX: NAN)
Another growth share that Hyperion has in its fund is Nanosonics. It is the infection control specialist behind the Trophon EPR disinfection system for ultrasound probes. The fund manager notes that the company released a trading update in November and revealed a 4% increase in consumables sales between 1 July and 31 October. Management also advised of an improvement in the number of new Trophon unit installations compared to the later months of FY 2020. Another positive that caught the eye of Hyperion was that "Nanosonics emphasised the continued significance and unmet need for their lead new product which is currently in development." It was also pleased to see the company sign an agreement with I-MED Radiology Network to update its fleet of Trophon EPRs to the newer Trophon 2 model. I-MED will also expand its installed base to ensure standardised practice for high level disinfection of ultrasound equipment.
WiseTech Global Ltd (ASX: WTC)
Finally, this logistics solutions company is another growth share you'll find in the Hyperion Australian Growth Companies Fund. The fund manager appears very positive on WiseTech Global's outlook given its sizeable market opportunity. It commented: "WiseTech's current target segment within the broader market, that being global supply chain software execution IT, was valued by Gartner at US$4.7 billion in 2019. With an estimated 7% market share of this segment, WiseTech's growth opportunity remains significant." It also notes that "the company provided evidence of its value proposition via compelling product demonstrations of CargoWise One and CargoWise Neo along with interviews with large users of CargoWise One."
