Celeste upgraded in the latest FE/Fundinfo Crown Ratings

September 10, 2019 11:37 pm

The Celeste Australian Australian Small Companies Fund has been upgraded from two Crowns in February to five Crowns.

Five Crowns were awarded to funds which were in the top 10% based on alpha, volatility and consistently strong performance. In total, there were 17 funds in this sector awarded a five Crown rating.

Paul Biddle, portfolio manager of the Celeste Australian Small Companies fund, said: “We tend to stick to our knitting and invest in good quality, strong business franchises with clean accounting. 

“Our broad investment process hasn’t changed over the three years, we run a concentrated portfolio with 30-35 stocks which has proven to be a value-add strategy in the long term.”

He said there were opportunities in small-cap stocks more so than large caps as they were less covered by analysts.

“If you can find those small-cap companies that can grow into big companies then you can make big gains. But you have to have a disciplined process to make sure you avoid those companies that disappear or those which are too complex. There are a lot more pitfalls,” he said.