Melbourne-based Acorn Capital, overseeing $700 million in assets, has reported a robust 27 per cent return over the past year. Paul Palumbo, the firm’s portfolio manager for healthcare and industrials, attributed this impressive performance to a broad-based recovery within the micro-cap segment, highlighting contributions from a diverse range of stocks rather than a few isolated successes.
The strong returns were driven by a variety of ASX-listed picks across multiple sectors. In resources, lithium producer Elevra and gold and copper explorer Warriedar Resources were significant contributors. The industrial sector saw gains from engineering service provider SRG Global and Vysarn, which provides water services to miners and infrastructure players. Technology contributions came from computing and data solutions provider DUG Technology, while drug developer Amplia Therapeutics bolstered healthcare returns. In financials, Zip and payment automation firm QuickFee also played key roles.
Looking forward, Acorn Capital maintains a positive outlook on several commodities. Oil and gas supplies are anticipated to remain disrupted for at least six to twelve months, supporting high prices for producers. Strategic metals such as rare earths, lithium, and titanium are expected to continue benefiting from ongoing geopolitical concerns, and gold is projected to rebound as markets refocus on government debt. The global artificial intelligence build-out is also seen as a significant driver for copper, uranium, and thermal coal, with the portfolio holding exposures across these sub-sectors.
Palumbo also pointed to under-the-radar investments, including unlisted Liquid Instruments, a Canberra-based business that is reinventing the global “test-and-measurement” market with its software-defined Moku platform. Amaero International, a US-based advanced materials company, is another key holding. It produces high-grade speciality metal powders used in defence, aerospace, and medical applications. Amaero is nearing an inflection point, with anticipated revenues of approximately $20 million this financial year, expected to more than double annually for the next three years.
