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How the rich invest: Thorney Investment Group founder Alex Waislitz

Billionaire investor Alex Waislitz keeps finding winners in some of the country’s smallest listed companies.

Alex Waislitz started his own investment firm after working for the late Richard Pratt.
Alex Waislitz started his own investment firm after working for the late Richard Pratt.

Name: Alex Waislitz

Age: 60

Lives: Melbourne

Estimated wealth: $1.39 billion

Source: Private investment firm Thorney

Secrets of success: Activist investing in small and micro cap companies

Billionaire investor Alex Waislitz keeps finding winners in some of the country’s smallest listed companies.

Waislitz has at least five stocks that have doubled in value over the past 12 months, ranging from one of the hottest companies on the ASX to small but fast growing technology and energy plays.

The best stock for the billionaire’s private investment group Thorney has quietly been one of the best small cap floats this year, Melbourne education technology company ReadCloud.

Its shares have trebled since floating at 20 cents each in February, when Thorney emerged with a 13 per cent stake in the business. Students and teachers using the ReadCloud app can share notes, questions, videos and weblinks within the platform and the company has an aggressive expansion strategy across schools in Australia.

Waislitz also has long been a shareholder in another startling success, fintech company Afterpay — which has doubled in value in the last two months alone. Afterpay shares are up 143 per cent this year.

Another strong stock has been Zenith Energy, a Perth independent power producer that has doubled in value in 12 months. Thorney more than doubled its stake in Zenith earlier this year.

Some pointers on how to make a tonne of cash
Some pointers on how to make a tonne of cash

Waislitz also has shares in oil and gas producer Senex Energy, which is up about 100 per cent since last September, and engineering company Engenco, which has risen 109 per cent since January 1.

Other strong performers in the Thorney portfolio include NextDC, up 72 per cent in 12 months, Mayne Pharma, up 30 per cent since January, and superannuation technology firm Hub24, up 84 per cent in a year.

Waislitz is this year celebrating the 25th anniversary of the establishment of Thorney, which has assets of more than $1 billion and has made its mark by taking an interventionist strategy in small and microcaps across the ASX.

Thorney will typically take large stakes in small companies and seek to influence management strategy and board appointments, and by investing its own money for most of its history has racked up one of the best track records among Australian investors.

Waislitz started his own investment firm after working for the late Richard Pratt at cardboard manufacturing and recycling giant Visy and an earlier stint in the New York office of the late Robert Holmes a Court.

wealth graphic for Stensholt feature
wealth graphic for Stensholt feature

The billionaire started Thorney with the proceeds of a parcel of Amcor shares worth $1.15 million, a present from his grandmother-in-law, Paula Pratt. A quarter of a century later, Waislitz has his own investments, runs two listed investment companies in Thorney Opportunities and Thorney Technologies and has plans to launch a similar vehicle that invests in or lends money to property companies or for development projects.

Thorney already lends about $20m to property developers and small companies and is considering ramping that figure up to $100m.

Waislitz also has made good returns investing in commercial and residential property assets in the United States, including in funds that hold office towns in cities such as Chicago, Pittsburgh, Boston and New York.

He wants to have at least half of Thorney’s assets in the US within about five years, where he has been spending more time and has established partnerships with local investment houses.

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Original URL: https://www.theaustralian.com.au/business/wealth/how-the-rich-invest-thorney-investment-group-founder-alex-waislitz/news-story/0e91e781cc90606752eee64f1faa79fb