Fund Manager Summary
The fund managers believe that the outlook for Sims Ltd presents a significant opportunity for investors. In their opinion, the recent performance of the stock, which rose by 24%, is indicative of strong fundamentals. Key factors contributing to this positive momentum include potential benefits from US tariffs on steel imports, a solid half-year result showcasing improved US scrap margins, and the strategic acquisition of Radius Recycling by a subsidiary of the Toyota Group. These developments reflect a growing positive sentiment towards the sector, reinforcing the fund managers' confidence in Sims Ltd's future prospects.
Source: Trading View
Commentary From The Managers
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Yarra Capital Management
31 Oct 2025
$15.96
Summary
- Sims Ltd (SGM) continues to be an overweight position for Yarra Capital Management.
- The company outperformed during the month, supported by a 2.3% increase in Turkish scrap steel prices.
- Yarra Capital Management believes the company’s majority US exposure positions it well to benefit from steel tariffs.
- The focus on margin over volumes is yielding solid results for the company.
- There is long-term upside potential for scrap demand, particularly due to its use in lower emissions Electric Arc Furnace steel making operations.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Yarra Capital Management
31 Oct 2025
$15.96
- Sims Ltd (SGM) continues to be an overweight position for Yarra Capital Management.
- The company outperformed during the month, supported by a 2.3% increase in Turkish scrap steel prices.
- Yarra Capital Management believes the company’s majority US exposure positions it well to benefit from steel tariffs.
- The focus on margin over volumes is yielding solid results for the company.
- There is long-term upside potential for scrap demand, particularly due to its use in lower emissions Electric Arc Furnace steel making operations.
Summary
Yarra Capital Management
31 Mar 2025
$14.63
- Sims Limited (SGM) outperformed following half-year results.
- Reported underlying EBIT of $73 million, a 184% increase compared to previous period.
- Improved margins in North America drove financial results.
- Yarra Capital Management views results as supportive of SGM’s strategy focusing on margin over scrap volumes.
- Maintaining an overweight position due to majority US exposure benefitting from steel tariffs.
- Long-term upside anticipated for scrap demand linked to lower emissions Electric Arc Furnace steelmaking.
Summary
Maple-Brown Abbott
31 Mar 2025
$14.63
- Sims Ltd's position increased by 24%
- Share price supported by potential benefits from US tariffs on steel imports
- Solid half-year results reflect improvement in US scrap margins
- Acquisition of US competitor Radius Recycling by Toyota Group signals positive sentiment in the sector
- Maple-Brown Abbott continues to hold their position in Sims Ltd
Summary
Yarra Capital Management
30 June 2024
$10.20
- Yarra Capital Management highlights that Sims Ltd (SGM) has underperformed following a disappointing operational update.
- The company anticipates reporting an underlying 2H EBIT that is marginally lower than 1HFY24.
- The near-term outlook for SGM is challenging due to ongoing over-production of steel by China.
- Despite current difficulties, SGM is trading well below NTA.
- Evidence suggests that North America (NAM) is beginning to show signs of recovery.
- Given these factors, Yarra Capital Management is pleased to maintain its overweight position in SGM.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"It appears that Sims Ltd is riding a wave of favorable market dynamics, with US tariffs and strategic acquisitions potentially fueling growth. A 24% gain suggests investors might be sensing a broader recovery in the sector, but caution is still warranted as the landscape evolves."
Last Updated: 31 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in Sims Ltd (ASX:SGM)?
Fund managers including Maple-Brown Abbott and Yarra Capital Management have invested in Sims Ltd (ASX:SGM).
Why do fund managers invest in Sims Ltd?
Fund managers have invested in Sims Ltd due to its strong performance, evidenced by a 24% increase in share price. Key factors include anticipated benefits from US tariffs on steel imports, improved US scrap margins reflected in solid half-year results, and positive industry sentiment following the acquisition of Radius Recycling by a subsidiary of the Toyota Group.
What happened to Sims Ltd (ASX:SGM)?
There have been no recent updates from fund managers regarding Sims Ltd although fund managers including Maple-Brown Abbott and Yarra Capital Management have previously commented.