Seneca's 3 underrated small caps for 2025

Seneca's Luke Laretive has had an objectively good year. In his first 12 months of running the firm's new small-cap strategy, he's delivered his investors a return of 28.36% (an excess return over the Small Ords benchmark of nearly 10%).

He attributes the strategy's outperformance over the last year to investing in, simply, well-run businesses led by real entrepreneurs - particularly those companies that have been undervalued or unappreciated by the market.

Take companies with mispriced assets, for example, or scarce commodity plays, stocks with inflecting profitability or growth companies that have been undervalued by the market.

In this Fund in Focus, Laretive takes investors through his outlook for small caps in 2025, how he thinks about investing, three high-conviction ideas, as well as a crowded small cap that he would be taking profits on.

Note: This interview was recorded on Wednesday 20 November 2024.

https://www.livewiremarkets.com/wires...