- The AFR reports a local hedge fund returned 294% largely from a single “10-bagger” stock.
- The article excerpt does not name the fund, the stock, or the time period, and no independent sources verify the claim.
- ASX “10-bagger” examples like Supply Network (SNL) and Pro Medicus (PME) exist, but none are clearly linked to this story.
- Investors should treat the headline cautiously and verify disclosures, net-vs-gross returns, fees, and concentration risk before drawing conclusions.
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After reviewing the primary AFR article “Local hedge fund returns 294pc thanks to this 10-bagger” [Primary], I have searched for corroborating evidence regarding which fund, which stock, and over what period such performance was achieved. Despite the bold headline, no authoritative secondary sources—aside from the AFR article—unambiguously confirm the fund’s identity or the stock responsible for the “10-bagger.”
The AFR article claims that a local hedge fund posted a return of 294 % (“approximately 3-times its value”) attributed primarily to a single stock that rose ten-fold (“10-bagger”). However, accessing the full text reveals that no named fund or stock is disclosed publicly in that excerpt. Without that, the key data is anecdotal.
Independent sources reveal several ASX stocks that have delivered 10-bagger or greater returns over multiyear periods. Supply Network Ltd (ASX: SNL) rose ~1 058 % over the past five years; Pro Medicus Ltd delivered more than 1 000 % return over ten years among top “10-bagger” producers; Audinate Ltd has strong growth metrics though less extreme than PME or SNL in absolute return ratios. These names are plausible candidates for contributing to strong returns in local funds.
But none of the “10-bagger” stocks identified are definitively linked in media reports to the AFR’s 294 % hedge fund claim. The AFR article’s lack of detail (no stock/manager disclosure) suggests either a confidentiality or promotional positioning.
Strategic implications for investors and research professionals include: risk concentration; selection bias in headline-making stories; the necessity of verifying exposure, holding time-periods, fees and net vs gross returns; and monitoring valuation multiples of fast-rising stocks to avoid late-cycle risk.
Open questions remain: Which stock actually delivered the “10-bagger”? Is the 294 % net return or gross? Over what time horizon? Which hedge fund is involved? Are there significant tail-risks from valuation, liquidity, or regulatory exposure?
Supporting Notes
- The primary article attributes a 294 % return to a local hedge fund due to a single 10-bagger stock, but does not publicly name the fund or the stock in that headline excerpt.
- Supply Network Ltd (ASX: SNL) has delivered ~1 058 % growth over five years, meeting 10-bagger status.
- Pro Medicus Ltd is frequently cited among ASX stocks that have achieved more than tenfold returns over longer periods, particularly in medical imaging technology.
- Audinate Ltd’s revenue growth: ~28-30 % year-on-year; gross profit increasing significantly, with recent reporting showing ~32.6 % growth in software and ~26.4 % in chips/cards/modules.
- Despite strong performance of these stocks, no public verification via filings or other media links them to a hedge fund making 294 % returns and attributing it to one 10-bagger.
- Many high return stories lack context: net vs gross, duration, fees, risk, liquidity—all crucial for assessing true performance impact for investors.