Livewire.
With top-tier returns across two funds, Ophir’s Andrew Mitchell explains the stock stories, signals, and strategy that made FY25 a success.
Writing about fund performance – especially over a one-year period – is a nuanced task. Whilst we like to celebrate a job well done, the fact that fund performance should typically be viewed over at least a three (if not five) year period is not lost on us here at Livewire.
So, we temper our enthusiasm, disclaim accordingly, and make sure not to gild the lily. Every so often, however, a fund rises to the top of the short-term tables while also maintaining solid three- and five-year performance.
Even rarer is a manager that makes it into the top 10 across two different categories. But that’s the position Ophir Asset Management found itself in at the end of the 2025 financial year, with the best-performing Aussie equity fund in the Livewire database, the Ophir Opportunities Fund, which delivered a 39.2% return, and the second-best global equity fund, the Ophir Global Opportunities Fund, which delivered 41.8%. Without adding too much spice, that’s an exceptional feat.
For a deeper dive on the performance, you can check out the following wires:
- The top 10 Aussie equity funds delivered north of 20% last FY (the best nearly doubled it)
- The top 5 global equity funds delivered more than 37% in a volatile FY25
To boot, the Ophir Opportunities Fund has delivered 30.78% p.a. over the past three years, and 23.21% p.a. since inception (12 years), whilst the Ophir Global Opportunities Fund delivered 24.86% p.a. over the past three years and 18.10% p.a. since inception (6 years).
Following these results, I sat down with Co-founder and Senior Portfolio Manager Andrew Mitchell to understand what drove performance over the past 12 months, how he is currently viewing the markets, and a handful of stocks he and his team like.
Art, science, and the conviction to hold
For Mitchell, the FY25 success boils down to the basics: stock picking and position sizing.
“Stocks and position sizing – we got both of those things right.”
“In Australia, there were far fewer winners last year, so it was a challenging year. But we were fortunate to do the work and have conviction on those winners,” added Mitchell.
Even in global markets, where opportunities were more abundant, the fund’s beta (or market exposure) was a modest 1.05.
“We weren’t taking much market risk. In fact, we faced about a 6% headwind from factor exposure, so we really had to get our stocks right”, noted Mitchell
When asked about the balance between science (data-driven analytics) and art (market feel) when it comes to stock picking and position sizing, Mitchell was candid.
“There’s a lot of art”, he explained. “It’s an intangible, but very valuable. But as we progress, we’re trying to make it more science: replicable, process-driven, backed by data.”
According to Mitchell, the Ophir philosophy isn’t just about decision-making at the top. “The trick for me is to train all our staff so they can make calls and refer them up in a way that Steve [Co-founder and Portfolio Manager, Steven Ng] and I understand,” Mitchell added.
Lessons, risks, and managing time
Even in a standout year, Mitchell is reflective.
“We made mistakes, and they get masked by the winners. But we could have doubled down on the extra work – talking to customers and suppliers instead of just cycling through mindless meetings with companies,” he admitted.
“We’re always refining our process. The market gets more efficient every year – if we don’t get better, we’ll be roadkill.”
Mitchell also highlighted time as a critical constraint: “There’s no point spending endless time on a company because it’s hard to understand. Sometimes it’s best to just sell early if your thesis isn’t playing out.”
This awareness extends to market conditions. Despite a volatile macro backdrop, including Trump’s Liberation Day announcement and geopolitical tensions, Mitchell sees opportunity.
“The market has climbed a wall of worry. There’s always a reason not to invest. But we didn’t throw the baby out with the bathwater. We stayed fully invested and found opportunities,” he said. Importantly, “the Fed is at 4.5% – they’ve got room to cut. So I’m optimistic for the next 12 months.”
That said, vigilance is non-negotiable. “Only the paranoid survive,” quipped Mitchell.
“We’re always hyper-aware, watching employment data, yield curves, and economic indicators. You’ve got to be prepared if something goes really wrong.”
Stock stories: conviction at work
Mitchell emphasised that the team’s winners this year weren’t just lucky picks. Rather, they were the result of deep work, giving the team the confidence to hold in the face of fear.
“You can’t buy conviction if you haven’t done the work,” said Mitchell
“All our best winners had big negative headlines at some point, but we held through because we’d done the research”.
Life360 (ASX: 360)
A long-time holding in the Australian portfolio, Life360 stands out as a rare platform-style, B2C business in Australia.
“They’ve got that virality. Customer acquisition costs are low. Once they really start flexing the platform – advertising, pet, aged care – it’s going to surprise everyone,” Mitchell said.
While acknowledging the stock’s rerated multiple, he remains confident in its long-term optionality and monetisation potential.
Generation Development Group (ASX: GDG)
A less discussed but standout performer, Generation Development Group stands to benefit from its acquisitions of Evidentia and Lonsec.
“We’d done our work in the asset consulting industry. It’s a scale business, and they’ve now got a huge lead,” Mitchell said.
“That gives them leverage with the IFAs that use them. It’s got a long runway.”
Ophir also participated in a capital raise, backing the consolidation play at attractive terms.
Stride (NYSE: LRN)
The best performer in the global portfolio, Stride offers online education – initially overlooked as a COVID beneficiary.
“No one wanted to see Stride at a conference post-COVID. But we did, and the business kept growing,” Mitchell said.
“Then a short report hit on fears of funding cuts. But we’d done the work and it turned out the concerns were unfounded. The stock got smoked, then surged on results.”
Stride is now a multi-bagger and a four-year holding that has richly rewarded Ophir’s conviction.
iRhythm (NASDAQ: IRTC)
This company offers a modern alternative to Holter monitors for heart rhythm detection.
“It’s less invasive, uses superior algorithms, and is gaining market share again,” Mitchell said.
“The exciting part is expansion into primary care, catching arrhythmias early in patients who don’t even know they have them.”
iRhythm was up ~70% in FY25 and was another counter-consensus win.
AAR Corp (NYSE: AIR)
A recent standout in Ophir’s global portfolio, AAR Corp, which provides aircraft maintenance services, has delivered a timely profit upgrade, driven by favourable industry dynamics and strong execution.
AAR is picking up market share, thanks to the combination of aging fleets, delivery delays from Boeing and Airbus, and the ability to get parts where they are needed.
With current market share in the high single digits, Mitchell believes AAR can scale to 20%, offering meaningful upside.
Looking ahead: risks and opportunities
Mitchell warned that the biggest risk in the coming year may be inflation and sticky interest rates.
“We’re all expecting rate cuts, but if inflation doesn’t fall and the 10-year heads toward 5%, that’s a problem,” he said.
“The market wants cuts, Trump wants cuts, and if they don’t come, that ‘wall of worry’ might get steeper.”
On the flipside, the biggest opportunity?
“US small caps,” he said without hesitation.
“They’re trading at their lowest valuation relative to large caps since the 2001 dotcom bubble. The Russell 2000 is still 15% off its highs while the S&P hits records. If earnings revisions pick up and breadth improves, it could be on for young and old.”
Conclusion: hard work, high conviction
Ophir’s standout performance in FY25 is no fluke. It’s the product of process, teamwork, and unshakeable conviction earned through tireless research.
“There’s a lot of strain on relationships from all the travel and work,” Mitchell admitted.
“But we love it. It’s fun. And when you get it right, it’s incredibly rewarding.”
With breadth improving, small caps rebounding, and a playbook that clearly works, Ophir may well be worth watching again in FY26.
To view full article: Inside Ophir’s stellar FY25 with Andrew Mitchell (and 5 stock he likes right now) – Chris Conway | Livewire
By Chris Conway
