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Hugh Dive

Hugh is the Chief Investment Officer at Atlas Funds Management, a boutique investment manager offering innovative listed alternative investments that offer consistent high income paid quarterly. Prior to Atlas, Hugh was a Senior Portfolio Manager at Aurora Funds Management focusing on the Aurora Dividend Income Trust and Aurora Property Buy-Write Income Trust. Earlier, Hugh was Head of Listed Securities at Philo Capital where he was responsible for managing over A$1 billion. Hugh has also previously been Head of Basic Materials at Citigroup Investment Research. In this role he covered the chemicals, building materials and steel sectors. In the 2011 Reuters StarMine Equity Analyst Awards, he was rated 5th overall in Australia for stock picking and first in the Diversified Industrials and Chemicals sectors. Hugh has extensive portfolio management experience gained at Investors Mutual, with a successful track record managing both small and large capitalisation value funds. In 2009, one of the funds he helped manage, the Investors Mutual Future Leaders Fund, won the AFR Smart Investor Award for the best Australian small cap fund. Hugh started in funds management with CC&L Investment Management in Vancouver, Canada’s largest independent fund manager with C$60B under management. At CC&L he focused on asset allocation and Canadian equity analysis. Hugh holds bachelor degrees in both Economics and Law from the University of Sydney, Canadian Securities Course (Honours) and is a CFA charter holder.

Breaking up and spinning off

Hugh Dive
Hugh Dive Atlas Funds Management

In late September Commonwealth Bank announced both the sale of its life insurance business and that they were looking at floating the bank’s funds management business Colonial First State GAM on the share market. Based on the strong performance of recent spin-offs investors are likely to have a close look... Show More

What we have learned from this reporting season

Hugh Dive
Hugh Dive Atlas Funds Management

During the months of February and August every year, the majority of Australian listed companies reveal their profit results and most provide guidance as to how they expect their businesses to perform in the upcoming year. Whilst we regularly meet with companies between reporting periods to gauge how their businesses... Show More

Bad and Fake Buy-backs

Hugh Dive
Hugh Dive Atlas Funds Management

Earlier this month casino operator Crown Resorts announced a buy-back of up to 4.2% of its outstanding shares, which builds on the $500 million of stock the company had already bought back over the past 12 months. Despite this prima facie positive announcement Crown has fallen 9% in August as... Show More

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The biggest IPO of all Time

Hugh Dive
Hugh Dive Atlas Funds Management

Since mid-June the oil price is up 15%, which has breathed fresh hope into beleaguered energy companies globally. The catalyst for the recovery in the oil price was the announcement that Saudi Arabia, OPEC’s largest producer, will limit oil exports coinicidentally as the Saudi's begin to start marketing what is... Show More

Half Year Report Card for Australian Equities

Hugh Dive
Hugh Dive Atlas Funds Management

The last six months have been stressful for Australian equity investors, despite the calm suggested by the ASX200 delivering a total return of +3.2% (capital appreciation plus dividends). December’s Santa Claus rally/Trump reflation tradewent a bit sour in January, similar to the feeling given by excessive consumption of four litre... Show More

Not all Great Ideas turn into Great Companies

Hugh Dive
Hugh Dive Atlas Funds Management

In my experience, most professional fund managers and equity analysts are frequently given unsolicited stock ideas from clients and friends. Generally, these are small companies, with a great idea that is either going to turn them into the next Amazon or revolutionise a particular industry. Frequently these companies are difficult... Show More

Faded Blue Chips

Hugh Dive
Hugh Dive Atlas Funds Management

Seemingly solid and financially stable companies are not always as strong and permanent as they may appear. In this week’s piece, we are going to look at blue chips on the ASX over the last quarter century that blew up, the factors that caused them to decline and some thoughts... Show More

Reporting season's best and worst

Hugh Dive
Hugh Dive Atlas Funds Management

This week saw the end of reporting season for 180 of the ASX200 companies and around 2,000 of the companies listed on the ASX. Over the past month these companies revealed their profit results for the last six months and provided guidance as to how they expect their businesses to... Show More

Invocare: Follow the dividend growth

Hugh Dive
Hugh Dive Atlas Funds Management

In our opinion, the result of the week was from integrated funeral business operator Invocare. Despite a reduction in the population mortality rate, management were able to deliver 10% earnings per share growth and 12% growth in dividends by both controlling costs, success in selling higher margin funeral products and... Show More

Result of the week: CSL Limited

Hugh Dive
Hugh Dive Atlas Funds Management

In our opinion, the result of the week was biotherapeutics company CSL’s half year results. Whilst the headline numbers were pre-announced in January, the granular details provided the market with greater confidence that CSL’s growth story will continue to deliver in the medium term. Show More

Result of the week came from Rio

Hugh Dive
Hugh Dive Atlas Funds Management

In our opinion the result of the week was Rio Tinto’s full year results that came out on Wednesday afternoon, though we recognise that we may be in the minority given the share price has been flat since then. Underlying profit of US$5.1 billion was ahead of expectations, despite the... Show More

Trading by those in the know

Hugh Dive
Hugh Dive Atlas Funds Management

In finance, there is a vast industry of market experts that attempt to provide guidance as to future moves in share prices. Often their predictions are based on nebulous macroeconomic factors such as concerns about rising bond yields or market attitude to risk. These factors, however, rarely have a significant... Show More

The biggest winner from rising rates

Hugh Dive
Hugh Dive Atlas Funds Management

Since the US election, the ASX has rallied +4%, but strong gains in financials, energy and materials have been offset by losses in the “bond proxy” sectors of listed property, utilities and telecoms. The biggest question facing equity investors now isn’t so much rising bond yields, but rather the trajectory... Show More

Agricultural Investment in Australia

Hugh Dive
Hugh Dive Atlas Funds Management

Over the last few weeks, it appears that Gina Rinehart’s Australian Outback Beef (67% Hancock Prospecting/ 33% China's Shanghai CRED) has won the bidding war for the Adelaide-based pastoral company S.Kidman & Co Ltd. If this $365 million deal is approved by the Foreign Investment Review Board (FIRB), the combined... Show More

Jaiprakash, GMA's buy-back is clearly supporting the share price, though one may question the long term rationale behind reducing a mortgage insurers prescribed capital rating at a time when GMA's metrics are deteriorating sharply. Hugh

On Bad and Fake Buy-backs -

Thanks Dylan. PTM are yet to buy back a share since the buy-back was announced Sept 13th 2016

On Bad and Fake Buy-backs -