Micro cap Fundie remains cautious but hunts for value in tough market

In the lead up to this week’s The Insider: Meet the Fund Manager, David McNamee from Altor Alpha Fund sat down with Reach Markets to provide a bit of information about his investment strategy, industries of interest and view on the market.

In the lead up to this week’s The Insider: Meet the Fund Manager, David McNamee from Altor Alpha Fund sat down with Reach Markets to provide a bit of information about his investment strategy, industries of interest and view on the market.

David holds a pretty cautious outlook of the overall market. While he acknowledges that microcaps have had a particularly hard time over the last 12-18 months, which have presented some great buying opportunities, the fundie highlights the importance of recognising that there still could be further downside to be had in companies that have enjoyed easy access to capital over the past couple of years but haven’t really delivered any tangible output.

Mr. McNamee is looking for high quality businesses with great management teams that have borne the brunt of the broad risk off attitude markets have been slapped with . Although he remains generally cautious until there is clear direction on inflation and interest rates, there is room in his portfolio for companies that have been following through with their promises to the market.

David is constantly on the hunt for value, but buried deep in the pits of unloved and mispriced small caps – these opportunities can often come with great growth prospects as well. He believes that there are some companies the market takes longer to understand, and he is often able to get in shortly before their strong tailwinds take them into profitability that is spurred on by growth.

He’s particularly focused on the clean tech space, and there are a whole bunch of verticals within that. David will present a stock in Friday’s session that is capitalising on the circular economy that has performed remarkably well amidst the market volatility it has encountered since listing.

The fund manager is honing in on a couple of commodities, especially vanadium . There are a couple of low enterprise value deposits that David believes are high quality and significantly undervalued. David is also interested in copper, graphite and precious metals.

While he is technically a generalist fund manager that is open to all sector’s, David has traditionally done well with technology investments. He makes sure to surround himself with talented people who are experts in their field . The wholesale Altor Alpha Fund has a couple of really interesting positions in artificial intelligence, quantum computing and satellite technology that he finds especially fascinating . 

David has spent time at Bell Potter as an adviser, and also as a portfolio manager at microcap fund Scintilla Asset Management. He holds a Bachelor of Economics, International Trade and Finance from The University of Queensland.

Join David McNamee this Friday, 31st March at 12pm (AEDT) on our weekly The Insider: Meet the Fund Manager webcast to hear about his favourite sticks, investment strategy, market insights and more. There will also be an opportunity to ask questions during the session. To book yourself in, click here.

Past performance is not a reliable indicator of future performance.

 

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