What Happened to Blue Sky Alternative Investments Ltd’s Share Price?
Shares in asset manager Blue Sky Alternative Investments Ltd [ASX:BLA] rocketed ahead of a flat Aussie stock market today.
Blue Sky has enjoyed a barnstorming start to 2015. Today’s 4.4% gain brought the shares up nearly 73% in the year to date.
Indeed, since I recommended that readers of Australian Small-Cap Investigator buy this stock 11 months ago, it has returned a whopping 83% gain. That’s a solid tip in anyone’s language.
Why Did This Happen to BLA Shares?
Blue Sky is one of the only ways for Aussies to invest alongside a talented alternative asset manager through the stock market. Blue Sky puts investors’ funds to work across a range of alternative assets — things like private real estate, infrastructure, private equity, venture capital and water entitlements.
Blue Sky has flown under the radar of most investors for the past few years. But more and more people are waking up to the strength of the firm’s business model and the ability of its managers to sniff out good deals.
The firm is beating its own lofty targets for growth in assets under management. A bigger pool of assets means more fee income and profit attributable to shareholders. That’s why the Blue Sky share price has been on such a tear these past few months.
What Now for Blue Sky Alternative Investments Ltd Ltd?
In the asset management game, it’s just as important to achieve scale as it is to maintain performance.
Blue Sky ticks both of those boxes. This firm is dominating an attractive market with a model that’s hard for upstarts to replicate.
If we see a continuation of the long-term trend where investors gravitate more towards alternative assets, the sky could be the limit for the BLA share price.
These are the reasons why I tipped Blue Sky as a buy in May 2014. Back then, barely anybody knew about the company. And right now, I see a clutch of attractive stocks that show similar promise to rise to great heights.
If you have the right tolerance for risk, these speculative small-cap could be a perfect fit for your portfolio. Go here to find out more.
Cheers, Tim Dohrmann
Small-Cap Analyst, Australian Small-Cap Investigator