Three Investment Tips that you can apply to your investing today.

Unlocking Small Cap Success

At Under the Radar Report, our small cap portfolio has returned 22% per annum over the past two years. That’s 20 percentage points ahead of the ASX All Ordinaries Index. Here’s how we’ve consistently outperformed – and how you can too.

📈 Performance Comparison: Small Cap Portfolio vs. ASX All Ordinaries Index
Key Insights:

✔ Outperformance Margin: Your small-cap portfolio outpaced the index by 20 basis points annually over the two-year period.

✔ Small Cap Portfolio: Achieved a 22% annual return over the past two years, significantly outperforming the ASX All Ordinaries Index.

✔ ASX All Ordinaries Index: Delivered an average annual return of 6.4%, excluding dividends, over its history .

This stark contrast emphasizes the potential of well-researched small-cap investments and the effectiveness of a disciplined, diversified investment strategy. Start investing today following our equities advice.

This shows you how our returns are extending and significantly outperforming the ASX All Ordinaries Index. Find out our secrets!

1. The Money Is Made in the Holding

It’s a classic investing truth – long-term holding pays. We’ve seen this first hand through sustained positions in Austal ($ASB), Evolution Mining ($EVN) and Superloop ($SLC) Patience, diversification, and conviction are how we’ve maximised returns while minimising risk.

A key point: we hold around 20 positions across varied industries and balance sheet strengths.
This reduces portfolio risk and allows individual winners to shine. Our biggest gains have come from long-held positions that we didn’t overtrade.

2. Have Discipline on Taking Profits

It’s not just about holding winners – it’s about trimming at the right time. When a stock like Evolution Mining exceeds 10% of the portfolio, we rebalance.
This helps lock in gains while maintaining portfolio balance.

We sleep better knowing no single stock dominates our exposure. A systematic approach to profit-taking smooths volatility and protects capital.
The market gives and takes – discipline helps you hold onto the gains.

3. Don’t Let Losers Get You Down

Every investor has losing stocks – we’re no different. But losers shouldn’t dominate your attention or decisions.
We focus on fundamentals and keep laggards in perspective.

This week, we’ve reviewed positions like ARN Media ($ARN) and Medical Developments ($MVP). They’re part of a larger 20-stock portfolio, not the whole story.
What matters is staying rational, not reactive – and focusing on the data.

Bonus Tip: Hold Cash as a Strategic Weapon

Holding cash isn’t passive – it’s powerful. At the end of last year, we held 27% in cash to stay ready.
Now we’re at 20%, still primed to pounce on new bargains.

Think in steps: buy a bit, review results, buy a bit more. There’s no quick fix, just smart pacing and preparation.
Cash gives you flexibility and peace of mind – don’t underestimate it.

Get the Full Picture in Our 650th Issue

In our latest edition, we dive deeper into portfolio strategy and stock analysis.
You’ll find actionable insights, a new high-potential company, and our current holdings. If you are not a member yet, join today.

Thanks for reading – I’m Richard Hemming, and we’re here to help you navigate small cap success.