One of the top-performing investment returns focused on ASX large caps has been delivered by WAM Leaders Ltd (ASX: WLE).
Over the past year its portfolio has delivered a return of 17.2% before expenses and fees.
WAM Leaders lead portfolio manager Matthew Haupt recently spoke to Livewire to say where he thinks is an opportunity at the moment considering all the political and financial uncertainty going on at the moment.
Regardless of whether Labor or the Liberals win the next election, infrastructure is likely to benefit. Federal and State governments are promising to spend big to keep our capital cities moving.
This is good in the long-term because it improves the city and makes it a better place to live. In the short-term it's good for employment, for GDP and the companies contracted to do the construction.
One of his ideas is Cimic Group Ltd (ASX: CIM), the share price has risen around 80% over the past two years. However, Mr Haupt thinks there's still an opportunity surrounding the structure.
It is heading towards becoming a vertically integrated company like Transurban Group (ASX: TCL) where it constructs a project and then is in charge of managing too.
Another business that Mr Haupt mentioned is Lendlease Group (ASX: LLC). Its local arm in Australia is small but it could grow and become a significant, profitable part of the overall group.
As a bonus, he also suggested that suppliers to the construction industry like Boral Limited (ASX: BLD) and Adelaide Brighton Ltd (ASX: ABC) could be ones to look at.
Foolish takeaway
I agree with Mr Haupt. I like to find businesses that can keep growing regardless of economic dips or not. Infrastructure seems to be one of those sectors, but I'm personally unsure how big the opportunity is and the risks. It's outside of my circle of competence, so I'm personally happy to leave the opportunity to other people.
