Listed investment company Mirrabooka has started to selectively invest money back into the market as it becomes more confident about the economic outlook.
Mirrabooka said the company held a high level of cash throughout 2008/09, but as it became more confident it had increased its investments.
At year end, cash represented 13.1 per cent of the total portfolio.
"Going forward, remaining cash will allow Mirrabooka to participate in attractively priced new issues, which have been recently a feature of the market, or in further investments in stocks that we feel match our investment criteria," Mirrabooka said in a statement.
The company's top investment at 30 June was Nufarm at $8.3 million. It also ploughed $7.6 million into Oil Search and $7 million into Healthscope.
"Mirrabooka believes that current prices adequately reflect the economic recovery," it said.
The company, which invests in small to medium-sized businesses, said its success for the year ending 30 June reflected the approach it had taken to managing its portfolio.
"The combined small to mid-cap sector fell 27.8 per cent over the year whereas Mirrabooka's portfolio decline was a smaller 19.4 per cent," it said.
