Crypto Funds and Stock Pickers Shine in 2024

Australia's top-performing investment funds in 2024 revealed a clash between cryptocurrency-focused funds and seasoned stock pickers, with Pengana Capital taking the crown thanks to a 109.2% return.

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Pick & Scroll News
January 22, 2025

Australia's top-performing investment funds in 2024 revealed a clash between cryptocurrency-focused funds and seasoned stock pickers, with Pengana Capital taking the crown thanks to a 109.2% return. Crypto funds maintained dominance for a second year, delivering triple-digit returns, yet they lagged behind passive and single-coin strategies like bitcoin, which surged nearly 150% on regulatory optimism and market growth.


Funds like Merkle Tree Capital's Digital Asset Fund and ListedReserve's Managed Fund more than doubled their investors' money in 2024. However, active crypto funds struggled to match the returns of passive strategies, especially Bitcoin-only investments like Monochrome Asset Management's trust, which returned 135%. Bitcoin's historic rally past US$100,000 was fuelled by regulatory support and former US President Donald Trump's pro-crypto stance.


Pengana Capital stood out among equity managers, driven by concentrated bets on ASX-listed IperionX and biotech company Clarity Pharmaceuticals, which surged over 300%. Pengana's focused strategy on small-cap stocks helped it outperform large-cap strategies that faced challenges in 2024's concentrated market.


HMC Capital's Partners Fund showcased a strong activist approach, delivering nearly 56% returns. Strategic investments in Lendlease and Sigma Healthcare, paired with efforts to influence corporate decisions, paid off as Sigma received competition regulator approval for a $30 billion merger with Chemist Warehouse. The fund plans to expand its portfolio in 2025, targeting mispriced opportunities.


Heading into 2025, fund managers like Pengana and HMC Capital are doubling down on their core strategies. Whether leveraging crypto's volatility or influencing corporate strategies, these funds are well-positioned to navigate evolving market conditions.


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