Kieran Kennedy, Portfolio Manager at Mirrabooka Investments (ASX: MIR), outlined the company’s long-term approach to investing in Australian small and mid-cap equities. As a listed investment company, Mirrabooka seeks to generate capital growth and dividends by holding businesses it believes can grow earnings through economic cycles and sustain competitive advantages over time.
Kennedy said recent underperformance relative to the small cap benchmark reflected the portfolio’s limited exposure to resources stocks, which delivered outsized gains across gold, copper, uranium and lithium. Mirrabooka does not typically invest in commodity producers, preferring companies where long-term earnings growth, rather than commodity price cycles, drives returns.
The portfolio includes a number of established growth-oriented holdings that experienced a temporary lull in returns during the period. Kennedy said the company remains focused on valuation discipline and tax-effective management, avoiding reactive shifts in strategy.
Following a recent rights issue, Mirrabooka retains around $50 million in cash, providing flexibility to add to preferred holdings as valuations become more attractive.
