David Allingham, Eley Griffiths Group
"Look, I'd like to put forward Primewest Group. It's a property funds management business. It's based out of Perth, a little bit off the radar; under-researched, under-covered, illiquid. It's 80% owned by its founders; very entrepreneurial guys with vast property experience. What I really like about this story is how it has built its funds under management. So this is a fund manager that invests across property in syndicates and wholesale mandates. It's built its funds under management from $2 billion up to about $5 billion in the last couple of years, so very, very strong growth.
If you look at the peer set, you've got Charter Hall, which is in the ASX 100 and at all-time highs today and you've got Centuria Capital in our small to mid-cap space, $1.5 billion market cap, with about $10 billion in funds under management. This business is at $5 billion, so you've got a low base, and I think aggressive growth in funds under management in time.
It's got $50 million of net cash on the balance sheet, so very conservatively geared. I see very little downside risk in the stock at this price around the $1.15-$1.20 level. This stock was trading a $1.40 prior to the COVID-19 crisis. We think this company has a very long runway for growth, and with very little downside risk. We really like this stock and it is the largest position in our emerging companies fund."
https://www.livewiremarkets.com/wires/the-1-stock-picks-for-2021
