Several ASX shares are reporting their financial performance this week. At the same time, several Australian fund managers have also posted their annual returns, with some impressive numbers.
Consulting firm Mercer has published results for the top-performing investment fund strategies in the twelve months ending September 30, 2024.
Hyperion Asset Management's growth strategy took out top spot. Investments made in the firm's Growth Fund has paid off, delivering a stellar 42% return in that time.
At the centre of this performance are some key ASX shares, including WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and Macquarie Group Ltd (ASX: MQG).
Let's take a closer look at why these stocks remain core to Hyperion's portfolio.
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ASX shares drive Hyperion's returns
Hyperion's impressive gains come on the back of a rebound in the tech sector after a period when growth stocks were out of favour.
If you think back to 2022, ASX shares in energy and utilities were all the rage, whereas the growth end of the market was heavily sold off.
But in a world of higher interest rates, higher inflation, and geopolitical tensions, Hyperion's Australian Growth's focus on high-growth businesses looks to have set it apart from competitors.
As of its last disclosure, some of its largest holdings included Xero and Macquarie Group, alongside the recent headline-grabber WiseTech.
It accounted for nearly 10% of Hyperion's portfolio, according to The Australian Financial Review, and must have been a major winner. In the last 12 months, it has beaten the benchmark index by more than 45%.
In recent weeks, WiseTech has been the centre of controversy due to personal allegations involving its CEO, Richard White.
The ASX share has taken a hit amid these headlines. But Hyperion remains optimistic about its long-term prospects, betting on WiseTech's competitive position in global logistics software.
Meanwhile, according to a September letter to shareholders, Xero and Macquarie Group make up roughly 9% and 7% of the company's portfolio, respectively.
It is particularly bullish on Xero and sees further upsides for the tech player, providing an update of the ASX shares' latest in its September letter to shareholders:
Management…announced the acquisition of South African cloud-based reporting, insights and analytics platform Syft for US$70 million.
This acquisition aims to enhance data insights for small businesses and accounting and bookkeeping partners through custom reporting and visualisation features.
Foolish takeaway
While Hyperion has capitalised on a tech rally to deliver impressive returns, for ASX shares like WiseTech, Xero, and Macquarie, it is about the future, not the past.
That means nailing market execution and adapting to broader economic conditions. Time will tell which one of these stocks will still be rewarding shareholders in the future.
