Buy Hold Sell, by Livewire Markets

Small caps are nimble, fast-growing companies that punch well above their weight when it comes to delivering returns. Small caps may not have the size and scale of their large-cap counterparts, but that’s exactly what makes them so exciting. These companies are often innovators or disruptors, capturing niche markets and delivering rapid growth as they expand. It’s no wonder they’ve become a favourite hunting ground for investors looking for the next great 10-bagger.  However, investing in small caps isn’t without its risks. While some go on to become the blue chips of tomorrow, others can stumble as they navigate challenges like scaling up, raising capital, or competing against larger, better-resourced rivals. That’s why picking the right small-cap stocks is critical - and that’s exactly what this episode aims to help you do today.  In this episode, we’ll delve into five ASX-listed small caps with the help of David Keelan from Ellerston Capital and Andrew Peros from Ausbil Investment Management. From telecommunications to engineering, video game development, and even cyber safety for kids, these companies operate in sectors brimming with opportunity. Some have delivered spectacular returns over the past year - like Superloop, which has soared 215%, and Qoria, up 105%. Others, like Playside Studios, may be flying under investors' radars.  So, are these stocks poised for further growth, or is it time to cash in? You'll find out in this episode of Buy Hold Sell.  Note: This episode was recorded on Wednesday 20 November 2024. You can read an edited transcript below.  https://www.livewiremarkets.com/wires/buy-hold-sell-5-of-the-asx-s-fastest-growing-small-caps/ 

Traditional long-only investors, who don't tinker with their cash levels much, typically participate in all of the market's upside when it is flying and all of its downside when it's not. Markets typically increase over time, so this is a perfectly acceptable way to invest.  Long/short investors, however, can also profit when markets fall—but that's too simplistic an explanation. It suggests that long/short managers make money equally when markets go up and down, which is rarely the case.  Because long/short managers are also active beta managers (i.e. they pick stocks to outperform a benchmark or achieve a specific objective), they typically capture most of a market's upside while significantly limiting losses on the downside.  That means that much of their alpha (overall outperformance) is often generated by providing much better protection when things are bad versus smashing the market when it is flying.  With all that in mind, what better time to ask two long/short managers for their top defensive picks than right now - when equity markets are at all-time highs and valuations are on the ritzy side?  On this episode, Livewire's James Marlay is joined by Jun Bei Liu from Tribeca and David Moberley from ClearLIfe Capital for their analysis of five stocks that could weather a coming downturn - whenever that may be. Note: This episode was recorded on Wednesday 6 November 2024.

One key function of long/short fund managers is to compare similar companies and trade them against each other. These companies are often found within sectors but can also be found across sectors, as companies with similar characteristics. Once identified, a long/short manager will buy the stronger-performing company in the pair and sell the weaker-performing company. This is known as a 'pairs' trade. This strategy also has the benefit of being market-neutral (given one long and one short trade in the pair). The ASX is littered with potential pairs trading opportunities. Some examples include Coles and Woolworths, Fortescue and Rio Tinto, and Santos and Woodside. Given the focus on comparing companies and actively trading them against each other, who better to ask for their best and worst picks in a sector than a couple of long/short fund managers? For those who love stock picks on both sides of the ball, this episode is for you. Livewire's James Marlay was joined by Tribeca Investment Partners' Jun Bei Liu and ClearLife Capital's David Moberley to discuss their best and worst picks in five different sectors. Note: This episode was recorded on Wednesday 6 November 2024.

Lithium darling Pilbara Minerals has overtaken Flight Centre as the most-shorted stock on the ASX. After what seems like years at the top of the list, the travel company has dropped down to the 30th most-shorted stock on the ASX - with a short interest of 5.75%.  Today, only two of the 10 most-shorted stocks are not miners - while out of the top 20, only seven stocks are not within the minerals and resources sectors. It's fair to say then that the market remains bearish on the outlook for many of these stocks - with lithium and uranium miners heavily featured in the list.  So, is there any value among the most shorted stocks on the ASX? Or should investors be steering clear of these stocks?  To find out, Livewire's James Marlay was joined by Tribeca Investment Partners' Jun Bei Liu and ClearLife Capital's David Moberley.  They analyse three of the most heavily shorted stocks on the ASX - including Boss Energy, IDP Education and Seek - and each name a stock that they believe could see a short squeeze.  Note: This episode was recorded on Wednesday 6 November 2024. You can read an edited transcript below. https://www.livewiremarkets.com/wires/buy-hold-sell-hunting-for-value-among-5-of-the-asx-s-most-shorted-stocks/