If the Platinum Asset Management Ltd (ASX: PTM) share price does not outperform the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) index in the next five days or five months, I won't be bothered.
However, as a long-term investor (note: 'long-term' is measured in years — not months) I think Platinum Asset Management shares can outperform the broader market, with dividends reinvested.
Who is Platinum?
Platinum is a Sydney-based funds management company that accepts investors' money, pools it and invests it in global stock markets. It earns a fee for managing the money and for outperforming a benchmark.
Over recent years, Platinum has not performed as well as some of its investors had hoped, it lost some key people on its investing team and money was withdrawn.
True to form, sharemarket investors made a meal of it, saying Platinum was done and dusted and index funds and ETFs are taking its toll on the business.
However, yesterday, the company updated shareholders on its funds under management (FUM), stating that its FUM had jumped over $400 million between April and May.
Some other reasons I like Platinum can be found here.
You said you have 2 shares to outperform the ASX 200!
The second company that I think will outperform the ASX 200 is Gentrack Group Ltd (ASX: GTK), the small(ish) Kiwi software business.
Gentrack develops software solutions for utility companies in the energy and water sectors, and airports.
The company's shares are up 56% in a year, compared to the ASX 200's return of 6%. However, with an ongoing expansion in the UK, growth in its airports business and a handy dividend, I think Gentrack is worthy of closer inspection for investors focused on the long-term.
Foolish Takeaway
There is no guarantee that these two businesses will outperform the market. But given the concentration of the ASX 200 to the banking and resources sectors — both of which appear to be facing some headwinds — I would be happy to back Gentrack and Platinum over the long run.
