Hunting for 10-baggers - James Abela | Fidelity

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Apr 17, 2025

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INSIGHT

Defining Future Leaders

Future leaders are companies with high viability, sustainability, and credibility that compound returns over 5 to 10 years.
Holding such companies long term creates potential for massive wealth through 10- to 100-bagger returns.

INSIGHT

Global vs Aussie Small Caps

Global small and mid-caps are larger and more mature than Australian ones, with an average age of 28 years.
This maturity means many global mid-caps have survived multiple cycles and are more stable investments.

INSIGHT

Value in Global Mid-Caps

Global mid-caps are under-researched and therefore are available at attractive valuations with strong returns.
They often have 20% return on equity but trade around 20 to 22 times PE, making them compelling compared to Australian equivalents.

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Hunting for 10-baggers. For many investors, that's what it is all about. Searching for those high-quality compounding companies that can turn each $1 invested into $10.

Our guest today has made a career of this pursuit. James Abela, portfolio manager at Fidelity, has a particular focus on small-and-mid cap companies and runs the Fidelity Global Future Leaders Active ETF (ASX: FCAP).

In our conversation today, we speak to James about:

How small caps have held up in the current market environment
James' 3-part framework for assessing the quality of companies
How small caps move in phases, and where he likes to invest
The things that James worries about in a portfolio
Two stocks that James finds particularly interesting right now

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This episode has been sponsored by Fidelity. Thank you to Fidelity for helping keep all of our content free.

The Fidelity Global Future Leaders Active ETF harnesses Fidelity’s global network of 400+ investment experts, by focussing on finding global small to mid-caps companies with the potential for high growth. Invest in a diversified portfolio of Fidelity’s best ideas, designed to outperform the market, and deliver more consistent returns through market cycles.

Find out more about the Fidelity Global Future Leaders Active ETF

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