We remain cautious of businesses exposed to the Australian economy and continue to focus on those businesses that can grow irrespective of economic conditions.

Ensuring that our portfolios have exposure to the right balance of defensive and growth companies is something we are currently focusing on heavily.

As investors, when valuations are elevated, it is important that we remain disciplined not only in respect of which companies we add to our portfolios but which ones we exit.

Equity markets continued their strong positive momentum this month, with risk assets globally benefiting from further supportive central bank commentary and the prospect of additional Chinese stimulus measures.

While the ASX reporting season indicated an increasingly sluggish domestic economy, businesses exposed to higher growth offshore markets have flourished.

Both Ophir Funds delivered strong returns in January, as global equity markets embraced a more accomodative Fed and benign corporate earnings season in the US.

We look at a number of corporate transactions announced in Australian small caps this month and the stellar rise of modern day lay-by provider Afterpay (APT).