Aus. Smaller Companies Fund Recognized for LT Performance

Tribeca Australian Smaller Companies, managed by David Aylward and Simon Brown, is proud to be featured by Livewire Markets as one of the most consistent and best-performing small-cap funds over the long term in the Australian Equity Mid/Small-Cap Growth – 5 years and 10 years categories.

Past performance, while not a perfect indicator of future success, can provide valuable insights into fund performance. Funds often experience short-term periods of outperformance or underperformance due to market trends, making long-term outperformance difficult. SPIVA data reveals that 83.33% of funds underperformed the S&P/ASX 200 over the past decade, and 77.55% underperformed over five years. To identify consistently successful funds, Livewire has used the “batting average” metric from Morningstar data for Aussie small-cap fund managers. This measures how often a fund beats or matches an index over rolling periods, offering a way to assess long-term consistency.

Australian small-cap managers tend to outperform their large-cap and global counterparts in terms of consistency. This advantage is attributed to two main factors. Firstly, active managers have better access to information in the less-researched small-cap market, allowing them to find undervalued opportunities. Secondly, the small-cap index includes many lower-quality, speculative stocks that active managers can avoid, boosting relative performance.

Read more here: LiveWire Article