In Conversation with Morningstar
5 June 2025
Prasad Patkar
Head of Investments
Platypus Asset Management
Morningstar’s Eva Cook ventures ‘inside the mind’ of our Head of Investments, Prasad Patkar
Morningstar Senior Principal, Eva Cook, sat down with our Head of Investments, Prasad Patkar, to discuss Platypus’ portfolio management and risk management approach as part of her report entitled,
The Hits and Misses of Top Portfolio Managers:
Inside the Minds of Top Portfolio Managers: Lessons from Successes and Challenges
As one of only five Portfolio Managers to be included in the Morningstar report, Prasad was only too happy to share his knowledge and explain the Platypus Australia Equities Fund approach to portfolio and risk management;
“Platypus Asset Management has built its investment philosophy around the belief that a company’s share price is ultimately driven by its earnings growth.
So by focusing on businesses with strong growth potential, improving returns, and well-aligned leadership, Platypus seeks to achieve superior risk-adjusted returns for our clients.”
This approach has led to the fund achieving total returns of over 8% per annum¹ since inception way back in April, 2006. What’s more, that’s after all fees and costs have been paid (with the assumption of reinvestment of any distributions).
After taking a thorough look inside Prasad’s mind, Ms Cook discusses Platypus’ strategic stock selection, deeming it a “Hit” for her article. Signalling out three stocks as practical examples:
“Pro Medicus Limited emerged as a standout performer over the past 18 months. Platypus initiated its position in 2021, recognizing Pro Medicus’ long-duration earnings-growth potential, strong customer retention, and ongoing investment in research and development. Despite its consistently high valuation, strategic profit-taking allowed Platypus to manage risk while benefiting from Pro Medicus’ continued success,” wrote Ms Cook before also noting that the Platypus strategy, “…also saw gains from two founder-led financial services companies — Netwealth and Pinnacle Investment Management. Both firms maintained earnings growth through investment in technology and product offerings (Netwealth) and expansion of strategies and distribution capabilities (Pinnacle). While their exposure to financial markets volatility introduced cyclical risks, Platypus actively managed its positions, capitalizing on opportunities while mitigating short-term uncertainties.”
Prasad was also quizzed on a couple of missed opportunities and questioned about the flexibility of the investment philosophy taken by Platypus.
“The temptation to sway away from what has proven to work for our clients is ever-present. But by holding steadfast to our strategy, Platypus Asset Management is more than confident that we continue to provide tremendous risk-adjusted returns over the long term.”
Indeed, as part of her summary, Ms Cook paid note to the importance of an index unaware approach,
“Platypus’ approach underscores the importance of selecting stocks with strong earnings growth, regardless of benchmark weight.”
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About Platypus Asset Management
A specialist Australian equities manager, Platypus Asset Management was established in 1998 with funds from family and friends. Platypus currently manages approximately $5.4 billion in assets on behalf of some of Australia’s largest superannuation funds and institutions, as well as a base of smaller investors. In 2021 Australian Unity acquired 100 per cent of the issued share capital in Platypus Asset Management having been a joint venture partner in the business since 2006. For more information see the latest Platypus Australian Equity Fund Update
About Australian Unity
Established in 1840, we are Australia’s first wellbeing company, delivering health, wealth and care services for our members and the community. As a social enterprise, we’re motivated by our purpose to positively impact the wellbeing of millions. We reinvest profits to deliver products and services sustainably that matter most to our members, customers and the Australian community. For us, Real Wellbeing encompasses the whole experience of life. It’s about feeling supported in your health, connected with your community and empowered to live life on your terms.