By Alex Gluyas
Wilson Asset Management’s active listed investment company smashed the Australian sharemarket by more than 30 per cent last year as the dazzling rally in metal prices helped offset a substantial write-down in Corporate Travel Management.
WAM Active’s investment portfolio, which manages around $80 million, returned 41.4 per cent in the 12 months through December, outperforming the S&P/ASX All Ordinaries Accumulation Index’s 10.6 per cent gain. That was fuelled by a 31.4 per cent surge in the second half – the fund’s strongest six-month performance since inception 18 years ago.
Deputy portfolio manager Shaun Weick said the fund had progressively rotated into precious and base metal mining companies heading into the new year and holds large positions in ASX-listed copper and gold miners Catalyst Metals, Genesis Minerals, Capstone Copper and Chalice Mining.
“We believe these companies are well positioned for near term outperformance as the US continues to reduce interest rates, global growth improves and the US dollar moves lower,” Weick said.
The rally in metal prices has carried on into 2026 with copper hitting a fresh record above $US13,000 a tonne on Tuesday, extending its advance to 20 per cent since mid-November.
Gold is also hovering near an all-time high after last year’s best annual performance since 1979. Fellow precious metals silver, platinum and palladium are also rallying, bolstered by heightened geopolitical risk following the US capture of Venezuelan leader Nicolas Maduro.
WAM Active’s performance was also driven by an outsized 11.4 per cent position in rare earths and bauxite miner Lindian Resources, which rocketed more than 400 per cent last year.
The LIC also holds a 5.5 per cent position in Oliver Curtis’ artificial intelligence infrastructure start-up Firmus Technologies, whose equity value has tripled to $6 billion over a handful of months.
That helped offset WAM’s 1.9 per cent holding in Corporate Travel. The firm wrote down its investment in the embattled travel services provider by 50 per cent after an accounting scandal engulfed the company.
WAM’s lead portfolio manager Oscar Oberg said improved activity across capital markets allowed the fund to take a “more dynamic approach” to the portfolio so that the duo could capitalise on trading opportunities in company earnings updates, and merger and acquisitions.
“Over the past six months, we have materially increased portfolio turnover to take advantage of the opportunities we see in the market,” Weick added. “We expect the upcoming February reporting period should provide compelling trading opportunities.”
The outperformance of WAM Active’s portfolio allowed the LIC to declare a special dividend of 1¢ per share alongside its interim dividend of 3.2¢ a share, both fully franked.
The payouts represent an annualised fully franked interim dividend yield of 6.5 per cent and a grossed-up yield of 9.3 per cent when including the value of franking credits.
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