How the Rich Invest: David Paradice David Paradice, founder of...

How the Rich Invest: David Paradice​

David Paradice, founder of Paradice Investment Management.​

• By John Stensholt
• 6:31PM August 7, 2018
• 13 Comments

Name: David Paradice
Age: 59
small cap stock pickers for 30 years
Fund manager David Paradice has yet again delivered the goods.
One of Australia’s most renowned small cap fund managers, Paradice owns shares in many of the hottest performing stocks on the All Ordinaries this year.
Two of those are among only the five companies that have more than doubled in value — high resolution aerial imagery firm Nearmap and Australis Oil and Gas.
The rich lister owns the majority of Sydney-based boutique Paradice Investment Management, which now has a whopping $16.5 billion in funds under management mostly in small caps, though the firm has also outperformed its large cap benchmark.
Paradice is among the bigger shareholders in Perth-based Nearmap, which last month told the market it would deliver better than expected full year results later in August thanks to a string of big contract wins in the US.
Nearmap shares are up about 137 per cent since January 1. The company delivers the aerial pictures to government clients and companies in the architecture, construction, engineering, utilities and insurance markets.
Paradice also has had shares in Australis Oil & Gas, which has holdings in the Tuscaloosa Marine Shale in the US and also owns a licenced gas area in Portugal. Australis shares have risen 117 per cent since January 1.
Other strong performers in the Paradice small cap portfolio include earthmoving equipment rental company Emeco, which has risen 45 per cent since January 1, Cleanaway Waste Management (up 28 per cent), Whitehaven Coal (up 19 per cent) and coal miner New Hope Corp (up 26 per cent).
The Paradice Small Cap class B fund returned 25.47 per cent in the year to June 30, beating the 24.25 per cent achieved by its S&P/ASX Small Ordinaries Accumulation Index benchmark.
Paradice’s Large Cup fund made a 20.53 per cent return between its August 2017 inception date and July 30, easily beating the 12.01 per cent of its ASX 200 Accumulation Index.
Its biggest holdings including BHP Billiton, which is up 15 per cent since January 1, CSL (up 41 per cent) and Aristocrat Leisure (up 32 per cent).
While he has a three decade track record in Australian stocks, Paradice has in recent years moved to Denver — where his wife’s family is from — to help head up a global small cap fund with Kevin Beck, who he famously met while on holidays while looking for someone to talk about the stockmarket with.
The Paradice Global Small Mid Cap Fund has about 20 per cent of its shares in emerging markets and another 12 per cent in Japanese stocks.
Among those is Japanese manufacturer and distributor of hair care, skin care, perfumes, and deodorants Mandom Corporation, which has fallen 7 per cent since the start of the year.
Paradice has had better luck with New York Stock Exchange-listed Luxfer, which makes gas cylinders. Its shares have increased 35 per cent this year.​