A lesser-known money manager based in the NSW coastal town of Kingscliff, Tectonic Investment Management, has been crowned Australia’s top equity fund for the 2026 financial year. The firm’s Opportunities Fund delivered a remarkable 166.5 per cent return, more than doubling investors’ money, and topping Fund Monitors’ rankings of best-performing equity funds. Tectonic Investment Management operates as a dedicated money manager, overseeing various investment funds for its clients. The firm specialises in identifying and investing in companies poised for significant growth.
Tectonic’s stellar performance was primarily driven by early and sustained investments in two former bitcoin miners that have since become artificial intelligence (AI) darlings: Firmus and Nasdaq-listed data centre company IREN (formerly Iris Energy). Investment chief Ben Haan highlighted the firm’s conviction, noting, “I’m not disputing we got pretty lucky with Firmus, but what we’ve done well is not taking money off the table too soon.” The fund’s position in Firmus, first acquired in 2021, is now valued 45 times higher, largely due to its pivot into the booming AI sector.
While Tectonic’s focus on AI proved highly successful, other funds also achieved strong results in a volatile market. Hedge fund Paragon secured second place with a 92.9 per cent return for FY26, despite a challenging period for precious metals. Sydney-based Terra Capital’s Green Metals Fund ranked third, posting an impressive 90.2 per cent return, demonstrating the potential of its ESG-focused strategy even without investing in traditional gold, coal, oil, or gas. Terra Capital’s portfolio manager, Matthew Langsford, noted the critical minerals space as particularly interesting.
Rounding out the top ten were several other diverse strategies. Brisbane-based Sharpbridge Funds Management’s global equities fund returned 78.6 per cent, while Melbourne hedge fund L1 Capital and Perth-based Argonaut Funds Management both had gold funds in the top tier. The financial year also saw New York-based Apis Capital Partners, offered through Ironbark Investment Solutions, secure two spots in the top ten with its Global Long/Short and Global Small Companies strategies, returning 74.5 per cent and 69.8 per cent respectively.
