A year ago I sat down with Oscar Oberg, lead portfolio manager at Wilson Asset Management. His thesis then was that small caps were beaten down and due some mean reversion.
Alas, small caps haven’t done much since then, with the Small Ords returning 3.91%. Yet Oscar’s thesis also remains unchanged.
In fact, it’s gotten stronger!
Not only is he positioning for a rebound in smalls and microcaps, he’s doing it with overweight exposure to consumer discretionary, a sector that has been tarred and feathered by today’s macroeconomic landscape of high inflation and high rates. As Oscar puts it, “there’s no mean reversion without consumer discretionary.”
In today’s episode, Oscar lays out this thesis and the companies that make it up.
He also discusses:
Note: This episode was recorded on Tuesday July 20, 2023.
Timestamps
0:00 - START
1:50 - When will small caps bottom?
4:30 - No small cap rally without consumer discretionary
6:30 - Profit taking
7:30 - Why large cap tech matters to small caps
10:14 - 30-40% rally is not out of the question
14:30 - Harvey Norman's (ASX: HVN) property backstop
16:00 - Wearing the volatility
17:00 - Industrials
20:20 - Going tactical
24:15 - Mermaid Marine
26:30 - Body language matters
27:30 - City Chic (ASX: CCX) was a mistake
29:20 - Managing liquidity in small caps
32:45 - Takeover target
34:50 - Balance sheets look good
36:55 - Going public too early
40:25 - The classifieds company for the bottom drawer
The 15 stock portfolio
Finding value in dark corners of the market
Season's greetings from Livewire Markets
Buy Australian for the next recovery phase
The biggest trends to watch in the next 5 years
3 early warning signs it’s time to change your view
Sell-offs are a buying opportunity. Don’t get off the train
What the ‘smart money’ is saying about Australia's future
Did Buffett really change his mind on gold?
Tapping into research from the world’s best investors
How Ophir spot offshore growers (before they get big)
A key question most investors ignore, do you?
Chris Stott launched a new boutique. Then COVID hit.
Don’t fight the Fed, buy commodities instead
The $200 billion opportunity to power Australia's future
The unspoken rules of Wall Street’s best hedge funds
Buy growth, but don't ignore the price
The biggest experiment in markets: How does it end?
Navigating the COVID crisis
COVID-Crash special with Sam Sicilia and Martin Thompson
Create your
podcast in
minutes
It is Free
The emPOWERed Half Hour
U.S Property Podcast
Aligned Money Show
Dubai Property Podcast
The Ramsey Show
The Clark Howard Podcast