The 8 finance stocks outdoing the big banks in 2020
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2020 is proving not to be the year for the ASX’s big bank stocks, making way for the smaller finance players to make their mark.
One of the “Big 4”, the Commonwealth Bank (ASX:CBA), has witnessed less of a decline but is still down by 18 per cent while the other three are down over 20 per cent.
Yet the broader finance sector has only lost 3 per cent in 2020 and eight small caps have gained over 65 per cent this year.
|LRT||Lowell Res Fund||1.2||140||$32.8M|
|AVC||Auctus Invest Grp||0.46||130||$27.1M|
|SEQ||Sequoia Fin Grp Ltd||0.375||90||$45.0M|
|N1H||N1 Holdings Ltd||0.078||73||$6.4M|
|RMC||Resimac Grp Ltd||1.52||66||$599.4M|
Micro cap Finexia Financial Group (ASX:FNX) is the biggest winner having more than tripled this year. It provides services in stockbroking and wealth advisory.
Until August it was known as Mejority Capital (ASX:MJC) before it acquired corporate advisory firm Creative Capital.
Coming in second is investment platform SelfWealth (ASX:SWF), which has gained from increased stock market activity since COVID-19 first broke out.
A significant proportion from this has come from millennial investors participating for the first time and SelfWealth claims to be Australia’s cheapest online broker at $9.50 per trade – lower than what some of the big banks charge.
Auctus specialises in private equity opportunities such as energy storage and student accomodation.
The final fund manager on the list is diversified investment play Sequoia Financial Group (ASX:SEQ).
Resimac booked a net profit after tax of $55.7m in FY20, up 79 per cent from FY19.
The smaller N1 Holdings isn’t yet profitable but witnessed an increase in its revenue, particularly its commercial lending fees and interest segment which was up 196 per cent.