Investing in small & midcap companies

There are many small and medium size companies listed on the ASX covering a very diverse range of industries and market sectors. Investing in this sector can be subject to greater volatility compared with investing in larger capitalised companies because of the reliance these smaller companies have on single markets, products and/or key individuals. From time to time, shares in these smaller companies may also be subject to lower than normal liquidity.

Mirrabooka's investment team is continually reviewing the portfolio, meeting with company management and researching current and potential holdings. The investment process also includes input from stockbroker anaylsts who specalise in particular companies/sectors of the market as well as from selected industry experts.

As this section of the market requires a significant amount of research and subsequent close monitoring of the portfolio Mirrabooka is willing to move quickly to realise investments when we form a view for risk management purposes that an investment is well overvalued or there has been a material adverse change in a company’s circumstances or prospects. As such, we believe it is important to be nimble and responsive to material changes affecting these investments. 

Mirrabooka holds a well diversfied portfolio typically between 50 to 80 stocks depending on their fit with our investment aims and the desired concentration of risk within the portfolio.