We're pleased to be featured alongside Australia's leading fund managers in the Sydney Morning Herald's comprehensive analysis of top stock picks for 2025. As an Australian global equities fund, we remain focused on identifying exceptional investment opportunities in the evolving digital entertainment landscape.
Our portfolio management team has identified COVER Corporation as a standout investment opportunity in the rapidly expanding VTuber industry. This Japanese digital entertainment company represents the convergence of talent management and innovative character creation, demonstrating extraordinary growth from $1 million to $360 million revenue in just five years.
As our equity research highlighted, COVER Corporation offers compelling investment merits including strong revenue diversification beyond streaming into concerts, merchandising, and licencing. The company's revenue per VTuber has grown from $400,000 in 2020 to over $4 million today, showcasing the scalability of this digital entertainment model.
The company operates under exceptional management with chief executive Motoaki "Yagoo" Tanigo, whose talent-first approach has resulted in industry-leading retention rates. Additionally, COVER Corporation has demonstrated global expansion potential with successful moves into Western markets through group launches featuring European and American talent.
"The stock represents an untapped opportunity to invest in the future of digital entertainment at a reasonable valuation, given its growth profile and market position," noted our analysis.
Our global equities strategies continue to focus on identifying innovative companies with strong competitive moats and exceptional management teams in emerging sectors.
To read the article, click the link below.