The Australian Financial Review looks at how the wealthy are making money for our column, How the rich invest.
Billionaire Brett Blundy is enjoying some success on the sharemarket, after a rocky period earlier this year.
The BRW Rich List member is one of Australia's most successful retailers, operating a string of chains across the country from his new base of Singapore with a portfolio spanning from Bras N Things to candle and gift retailer Dusk to the Bridge Climb business operating on the Sydney Harbour Bridge.
In recent years, his BB Retail Capital has also pushed into the rural property sector, and his BBRC Beef business owns together with affiliates a herd of more than 150,000 cattle spread across 6 million acres of cattle stations across the Northern Territory.
Blundy is also a big holder of some of the better performing stocks on the ASX of late, led by his retail property stakes that have made him one of Australia's largest investors in homemaker centres.
Much of that holding is now found in the listed retail property trust Aventus Retail Property Fund, in which Blundy holds a stake of about 30 per cent – some of which is now out of escrow after investors have pushed up the value of the company since its float.
Aventus, which owns 20 centres around Australia worth about $1.3 billion, was listed on the ASX last October.
Forecasts surpassed
Since then, its stock is up about 23 per cent and the company beat prospectus forecasts in August when it generated funds from operations of $41 million.
Blundy may want to keep hold of his stake though, given Aventus' outlook is for an even better performance for the 2017 financial year.
There is also better news for his jewellery retailer Lovisa Holdings, which had taken a hit to its reputation after a tough 2016 that included declining profit margins and a cut in dividend.
But the shares have risen about 15 per cent in the month since and are up about 38 per cent in the past six months.
The third stock in Blundy's portfolio is homewares and home furnishings company Adairs, which listed on the ASX in July 2015.
It is trading about 5 per cent more than its original issue price and exceeded prospectus forecasts when it announced a $26 million net profit for the 2016 financial year in August.
