ACC targets small-cap stocks as portfolio tops $50b

NZ Herald

5 Nov, 2025 08:17 PMQuick Read

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ACC has more than $50 billion under management. Photo: RNZ / Angus Dreaver

There is one deep-pocketed institutional investor actively hunting bargains and takeover targets in the often-overlooked small end of the market – the Accident Compensation Corporation.

It has about $180 million currently invested in stocks outside of the favoured NZX50 Index and is a regular on share registers for NZX
small and micro-cap stocks, including Blackpearl and Paysauce.

Portfolio manager Nick Dravitzki oversees investments valued at more than $1 billion, which includes the Accident Compensation Corporation’s (ACC) holdings of small-cap stocks.

While ACC’s small cap exposure isn’t the bulk of the portfolio, they present interesting opportunities for ACC, he said.

Dravitzki said very few people are looking at small and micro caps on the NZX and underpinning ACC’s focus on them is a theory that small caps tend to outperform over time.