With the year ending with the value of the Australian stock market down more than 2%, many investors are trying to forget 2015.
However, the ASX-listed investment group Mirrabooka managed to get a return of 17.7% on its portfolio.
And when franking credits are included, that return was 21.4%.
Part of portfolio’s success is its focus on the small and mid-cap sector.
Mirrabooka, part of the Australian Foundation Investment Company, looks for attractive industry structure, quality management, including key executives having a significant investment in the company, and companies with low levels of gearing.
The big winners in the portfolio in 2015 were Netcomm Wireless, Treasury Wine Estates, Tassal Group, iProperty Group and AMA Group.
“The diversity of companies that are available in the small and mid-cap sector of the market provides a good window into the emerging areas of growth in the Australian economy,” says Mirrabooka.
“This offers a broad list of prospects for Mirrabooka to invest in. Whilst many of these opportunities are often well sought after, we expect the market over the remainder of the financial year to be volatile. In this environment even companies with good prospects can sometimes be oversold.”
Here’s the top 20 stocks in the portfolio as of the end of December:
Mirrabooka has recently sold out of Blackmores and James Hardie Industries. It’s bought in to Mainfreight, OzForex and Healthscope.
The company posted a 33.7% increase in net profit to $5 million and declared a fully franked interim dividend of 3.5 cents a share.
Mirrabooka is holding $17.8 million in cash, about 4.7% of the total portfolio.
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