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.
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