CIO and Portfolio Manager
The Fund invests principally in small and midcap listed (or soon to be listed) global equities. Its investment objective is to obtain returns greater than the MSCI All Country World Index SMID Cap unhedged in Australian dollars (‘Index’) over rolling 3 year periods after fees. The Fund’s investment manager, Lizard Investors LLC, uses a value oriented investment approach that seeks to identify and invest in quality businesses that create significant value but are mispriced, overlooked, or out-of-favour. The investment manager believes that unique opportunities exist due to limited available research, corporate actions, or unfavourable investor perception.
1. Net performance figures are shown after all fees and expenses, and assume reinvestment of distributions. No allowance has been made for buy/sell spreads. Please refer to the PDS for information regarding risks. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
2. Inception 1st April 2015.
3. Annualised standard deviation since inception.
4. Relative to MSCI All Country World SMID Cap index unhedged in AUD.
* For further information regarding fees please see the PDS available on our website.
COMMENTARY
Global equities faced renewed turbulence in April as escalating trade tensions and political instability weighed on sentiment. The US administration’s decision to impose sweeping tariffs, particularly on Chinese goods, triggered a wave of risk aversion and prompted retaliatory measures from China. The resulting spike in market volatility led to the worst weekly US equity performance since the pandemic era, before a partial recovery followed news of a temporary pause on some measures.
Further uncertainty emerged mid-month after President Trump threatened to dismiss Federal Reserve Chair Jerome Powell. This added to investor unease, particularly as the US reported a first-quarter GDP contraction of 0.3%, marking the first decline in three years. The drop was driven by a surge in pre-tariff imports and the weakest consumer spending growth since mid-2023.
European markets were mixed. Modest GDP growth in the eurozone and declining inflation provided some support, but persistent global trade risks and political noise continued to cap upside. The UK equity market also declined, reflecting broader risk aversion and domestic inflation concerns.
In contrast, Japanese equities posted modest gains, supported by resilient domestic demand and improving growth data. However, export-oriented sectors remained exposed to the unfolding trade environment. Chinese equities fell amid ongoing concerns around global demand, while select emerging markets such as Mexico and Canada held up relatively well.
A notable macro development was the sharp decline in the US dollar, which fell nearly 5% against a basket of major currencies. The move reflected rising US policy uncertainty and capital outflows, and it sparked a broad rally in non-USD currencies. This shift supported companies with international revenue exposure and non-US cost bases, favouring portfolios with a global orientation.
Portfolio highlights
The Fund returned 2.8% in April, significantly outperforming its benchmark by 4.2%. The result was driven by strong stock selection across core holdings, with notable contributions from several recently initiated positions. The Fund’s underweight exposure to the US also added value, as American markets lagged global peers amid heightened policy and economic concerns.
Oddity Tech was the top contributor for the month. The US-listed beauty and wellness platform delivered record first-quarter results, with strong growth across its IL MAKIAGE and SpoiledChild brands. Revenue rose 27% year-on-year, while adjusted earnings exceeded expectations. Management upgraded full-year guidance, citing robust international expansion and continued innovation within its molecule discovery platform, ODDITY LABS. The stock rose sharply on the back of the result, reflecting investor confidence in Oddity’s differentiated model and leadership in digital consumer products.
Topicus.com, a European vertical market software operator, was another strong performer. Shares continued to gain in anticipation of solid first-quarter earnings and following further M&A activity. The company remains focused on acquiring and growing mission-critical software businesses across the region. Its recurring revenue base, operational discipline, and aligned management structure make Topicus a core holding within the Fund’s software exposure.
Ionos Group also contributed meaningfully to performance. The European cloud infrastructure provider rallied following the release of strong full-year results and upbeat 2025 guidance. Revenue and earnings grew across key segments, with improved momentum in its AdTech business supporting the outlook. Having re-initiated the position in March, the Fund benefited from the market’s renewed confidence in Ionos’s scalable platform and growth trajectory.
On the negative side, Mister Car Wash and Ollie’s Bargain Outlet detracted from returns. Both companies reported resilient operating results, but their share prices were impacted by broad-based US equity weakness. Investor sentiment toward domestic US names remained fragile throughout the month, and the sharp decline in the US dollar further weighed on these positions. We remain constructive on both businesses but are closely monitoring macro and currency-related pressures.
The Fund established new positions in four companies during April. Cogeco Communications is a Canada-based broadband services company with strong recurring revenue and regional market strength. Gaztransport & Technigaz, headquartered in France, designs specialised engineering solutions for the storage and transport of liquefied natural gas. JustSystems is a Japanese enterprise software provider focused on document and data solutions, underpinned by a long track record of profitability. Rotork, based in the UK, manufactures flow control equipment used in critical infrastructure industries including water, energy, and manufacturing.
The Fund remains focused on identifying businesses with sustainable earnings growth, strong competitive advantages, and resilient cash flows, while actively managing exposure to evolving macroeconomic risks.