As the financial year wraps, Episode 37 of Stocks Neat takes a deep dive into the standout performance of Financial Year 25. Chief Investment Officer Steve Johnson is joined by Portfolio Managers, Gareth Brown and Alex Shevelev to discuss what drove results across Forager’s international and Australian funds — from Japanese software gems to ASX tech turnarounds and undervalued relics making quiet comebacks.

The conversation covers how passive flows are reshaping the investing landscape, the importance of preparedness in a momentum-driven market, and why the team is finding fertile ground in small caps despite years of pessimism.

Whether you're curious about current positioning or where the next wave of opportunities may lie, this episode offers a candid look at the thinking behind the returns.

Alternative assets are going mainstream — but are investors ready?

In this special episode of Stocks Neat, Steve Johnson is joined by Stephen Darke, CEO of Navigator Global Investments, to unpack the ever-expanding world of alternative assets: from hedge funds and seeding strategies to manager selection and structural risks.

With decades of experience allocating capital globally, Stephen shares what it takes to identify a repeatable edge, when to walk away, and why institutional lessons are now flowing into wealth channels.

“You can't just get excess returns across all cycles without giving something up, and what are you giving up… Liquidity.”

If you’ve ever wondered how alternatives can complement a core portfolio, or why liquidity isn’t always your friend, this episode delivers plenty of food for thought.

Markets are swinging wildly, and policy tweets aren’t helping. In this quarter’s podcast, Chief Investment Officer, Steve Johnson, and Forager International Shares Fund Portfolio Manager, Harvey Migotti, dive into the renewed tariff chaos sparked by Donald Trump’s latest announcements. They explore what it could mean for US exceptionalism, inflation expectations, and global investor sentiment.

From the bond market's sharp reaction, to the larger than expected tariffs and broader questions around corporate confidence and earnings revisions, Steve and Harvey dissect the key themes shaping portfolios right now.

In Episode 34 of Stocks Neat, Chief Investment Officer, Steve Johnson, and Portfolio Manager, Gareth Brown, take a deep dive into the challenges facing active fund management giants Magellan and Platinum, and the lessons for investors seeking long-term outperformance. They unpack what’s gone wrong, the rise of ETFs, and why small-cap opportunities remain a crucial edge for Forager.

The discussion explores industry trends, the impact of fund size on performance, and how Forager stays nimble in an increasingly passive market. With insights on market dynamics and practical tips for identifying standout active managers, this episode is a must-listen for thoughtful investors.

“Outperformance in active management is hard to find. It’s about being different and being right, which becomes increasingly difficult as funds grow larger and markets shift.”

As we approach Forager's 15th birthday, in Episode 33 of Stocks Neat, CIO Steve Johnson and Portfolio Manager Gareth Brown dive into the 50bps rate cut in the US and its impact on small-cap stocks. They unpack the latest market moves, spotlight companies like #Motorpoint and #Ferguson poised to benefit from lower rates, and share their strategies amidst ongoing volatility. 

The discussion explores resilient businesses, the correlation between rate cuts and small-cap outperformance, and how Forager has evolved over the past 15 years. Tune in as they reveal current opportunities and what the future may hold for investors navigating this changing landscape.

"Rate cuts, especially unexpected rate cuts, tend to benefit the more marginal businesses. Think heavily-geared businesses, cyclical industries, lower-margin businesses, companies that don't necessarily lead their markets of secondary and tertiary competitors."

As we close out the 2024 financial year, in Episode 32 of Stocks Neat, CIO Steve Johnson, and Portfolio Manager Alex Shevelev, do a deep dive into the state of small-cap stocks and the latest market movements. 

They discuss recent market volatility, spotlight resilient companies with strong recurring revenue, and share their stock-picking strategies. The episode also covers risk management approaches and provides insights on future market trends.

Tune in as they discuss current opportunities, from small-cap recovery to potential high-performing sectors. 

"The small-cap market has been a challenging space, but within it, there are high-quality businesses with strong recurring revenue and free cash flows, presenting significant opportunities for investors." 

In episode 31 of Stocks Neat, Portfolio Manager Gareth Brown and CIO Steve Johnson discuss Nvidia’s unprecedented rise, the recent Guzman y Gomez IPO, current investor sentiment and macroeconomic concerns.

They examine the future competitive landscape of the AI chip space and Guzman’s plans for global expansion. Moving onto the whiskey tasting, they then test a Glenturret whiskey from the "supposed" oldest distillery in Scotland.

The episode also features a discussion of geopolitical risks and the implications of government policy. Rather than looking at any policy changes from a market wide perspective, they argue that investors should focus on how that change may affect specific sectors. Listen to the full episode to find out more.

“If you can put aside the fear of missing out, there’s plenty to do in a world where investors are apathetic to 95% of stocks”.

In episode 30 of Stocks Neat, Portfolio Manager Harvey Migotti and CIO Steve Johnson discuss recent portfolio performance including which surprise sectors have started contributing in 2024. They cover a wide range of topics including AI related companies, China worries, and overlooked opportunities in sectors such as European financials. The conversation then moves to portfolio management and how changing market perceptions of companies can influence how to know when to let your winners run and when to bank profits.

"I don't want AI to come and do art for me. I want to say, come and clean my house and help me do laundry. So, I can do art."

Listen to the full episode to find out more.

In episode 29 of Stocks Neat Co-Portfolio Manager Gareth Brown and CIO Steve Johnson discuss several investing maxims, and how these might apply to portfolio positioning in prior and current markets.  

Topics covered include cleaning portfolios to include only high conviction ideas, selling when you can, maintaining cash in the portfolio, how to deploy cash in a downturn, and identifying diversity breakdowns that result from cross-sector correlations. 

Additionally, Gareth and Steve analyse some recent portfolio changes and the driving factors behind these shifts, before responding to a couple of questions sent in from listeners. 

Listen to the full episode to find out more. 

"I think you can deploy your cash first and then you can start thinking about recycling from more defensive, resilient businesses into some things that are offering higher prospective returns. Getting increasingly aggressive about that as you go through that part of the cycle.”

In episode 28 of Stocks Neat Co-Portfolio Manager Gareth Brown and CIO Steve Johnson discuss the prospect of price gouging in major Australian industries, the role future Competition Policy has to play, and the potential implications for investors. 

The topic of competition problems in Australia has garnered increased publicity in recent times, driven by concerns over long-term productivity issues and the more immediate price impact Australian households are experiencing. 

In this episode, Gareth and Steve discuss local oligopolies in the supermarket, airline and toll spaces, and what future Competition Policy shortcomings could mean for consumers and investors. Listen to the full episode to find out more.

“From a business perspective, there have been really good examples of companies [Gillette] pushing the dominant market position and pricing power too far, to the point where they create enough of an incentive for someone to actually enter an industry and become a real competitor."