By James Thomson


It shouldn’t be a surprise that the best year in the history of Wilson Asset Management’s WAM Microcap listed invested company was built on stocks that have been, at one time another, considered some of the worst stocks on the ASX.

Microcap investing is all about finding unloved gems that can rally spectacularly and often these can be found in the markets’ cast-offs.

“We see a lot of the beaten-up companies that used to be in the small- and mid-cap space that have been forgotten about,” lead portfolio manager Oscar Oberg says.

Such as Temple & Webster, an IPO dud that spent years in the wilderness before catching fire during last year’s COVID-19 lockdown. It rose 38 per cent in the 2021 financial year.

Or Seven West Media, which started the year at 10c and ended it at 35c, as the broader media sector rose on the reopening trade.

Or IVF ground Virtus health, which rose 120 per cent across the 2021 period, having fallen badly out of favour in the depths of lockdown.

Read more in the Australian Financial Review.