Optar Capital

A High Conviction Australian Equities Manager

home 1 experienced team

Experienced team

The partners have over 20 years’ experience researching Australian Equities and managing Australian Equities portfolios.

home 2 Concentrated, Best ideas, Long term focus

Concentrated, Best ideas

Portfolio turnover is sub 20% since inception, with active share greater than 65%, holding 15 to 20 names.

home 3 High conviction credentials

High conviction credentials

Portfolio managers have more than 10 years’ experience managing large scale concentrated portfolios with a strong track record and a proven ability to manage liquidity.

home 4 100% Independent

100% Independent

Optar Capital has complete alignment of interest with clients - staff own the business which allows us to focus on generating top quartile investment returns with no distractions.

home 5 Best Practice Service providers and Infrastructure

Best Practice providers

Optar uses only top tier providers for accounting & legal, OMS / EMS software, fund administration, custody and information services.

home 6 ESG Focused

ESG Focused

Optar Capital integrates ESG information into its financial analysis and decision-making.

Optar Capital News & Insights

Any sensible valuation should be grounded in the present value of free cash flows that a company will produce in the future. As market valuations soar for the ASX “WAAAX” stocks (Wisetech, AfterpayTouch, Appen, Altium, and Xero), it follows that the expectation of free cash flows are equally high. There’s no doubt that these are innovative, high growth businesses. But when share prices accelerate beyond fundamentals, this in fact increases the risk profile, as the growth requirement is pushed to extreme levels, rendering the company less likely to achieve outcomes in line with expectations. Ultimately, this leads us to the fundamental question: what’s already in the price?

5G mobile network technology - investment benefits

5G mobile network technology will bring real benefits for users, but for shareholders it represents more capital investment in an industry which has struggled to achieve adequate returns.
Telcos cannot assume that new ‘use cases’ will deliver a payback on 5G investment: we see no killer app that can reliably deliver a meaningful revenue boost.
5G needs to be accompanied by more rational pricing of the core mobile product if the networks are to make a return on the investment it requires.

The rise in bond yields from 2020 lows prompted a debate: is the market is jumping at inflation shadows, or is this an inflection point? In fact the move was driven by the risk premium in bonds, which was negative in 2019 and 2020. This sentiment was mirrored in equity markets: ultra-low rates would support high-multiple growth stocks while feeble growth and inflation weighed on value exposures. The divergence between the two groups exceeded tech bubble levels. The bond sell-off did prompt a strong rebound in the value end of the market, but by our reckoning it has yet to match the move in yields.