In the eight years since Collins St Asset Management was founded, its chief investment officer Vasilios Piperoglou can only recall two occasions when a thematic has presented itself with enough “significant asymmetry” to justify a major investment.
Collins St’s value fund was an early backer of uranium, and its holdings in the sector jumped between 400 per cent and 500 per cent over four years. The second was offshore oil services stocks, which surged between 300 per cent and 350 per cent in two and a half years.
Collins St Asset Management’s Vasilios Piperoglou believes the local gold sector is filled with potential multibaggers. Elke Meitzel
But Piperoglou is confident that Collins St’s latest bet will produce even better returns than both those opportunities.
“With gold stocks, the way the asymmetry is playing out currently, I think there is a greater potential in this than the other two … we’re seeing the very early signs of the start of a gold bull market,” Piperoglou says.
“At some stage, investors are going to get smacked in the face … there will be a moment within months, not years, where people wake up and these quality small caps will multibag.”
