A swathe of microcaps put in some truly remarkable gains last year. The share prices of Bubs, Jervois, and MyFiziq increased 12, 16, and 30 times respectively, and there were scores more that tripled or quadrupled. Yet many of these stocks have business models at very early, or even conceptual,... Show More
A great deal of inefficiency exists at the small end of the market. And where there is inefficiency, there is opportunity. The trick is in knowing how to identify the genuine opportunities, while avoiding the risks. If you are able to do that, there is a great deal of alpha... Show More
Markets can be prone to overconfidence at times, and when these ‘certainties’ don’t come to pass the results catch investors off guard. In 2011, markets had priced in never ending growth in Chinese demand for Australian commodities. By the time 2015 rolled around, those investors who had bought into this... Show More
In this latest Buy Side Brief we ask Sean Fenton of Tribeca Partners, James Williamson of Wentworth Williamson Partners and David Allingham of Eley Griffiths Group to identify a company they believe has been oversold in the recent market correction? Show More
Stocks in the automotive retailing and fleet management space have enjoyed a very strong re-rating this year, A.P. Eagers (ASX:APE) , SG Fleet (ASX:SGF) and Eclipx Group (ASX:ECX) are good examples. Money has rotated into these stocks as they have strong valuation support and are delivering sustainable earnings growth. Finding... Show More
Background to the consensus Short FMG trade and why we are Long FMG. Show More
Goldman Sachs says a combination of yield + growth has significantly outperformed a pure high yield strategy in the past 15 years. Livewire asked 4 contributors “What’s one stock in your universe that best fits the bill of yield + growth and why will it continue to flourish?” Show More
In Australia, business confidence tends to be positively correlated to share price movements. Unfortunately, business confidence also tends to lead corporate investment expenditure. This is not the ideal feedback loop. By way of example, from the start of 2003 through to mid 2007 the ASX 200 Industrial index rose by... Show More
Australia's ability to attract investment capital for energy projects is frustrated, Nathan Lim, Australian Ethical. Repealing the carbon tax is just another reason to justify the avoidance of the conventional and renewable energy sector in Australia. With overseas jurisdictions like California, China, Germany and Japan offering greater regulatory certainty, Australia's... Show More
The winners from the tax repeal are those groups that bore the incidence of that tax, Jeremy Bendeich, CIO, Avoca Investment Management. Will repealing the carbon tax impact or change investor sentiment? The repeal of the carbon tax will not alter general investor perceptions. The key policy objective of the... Show More
The rest of the world has reacted with disbelief, Steve Johnson, CIO, Forager Funds Management. Will repealing the carbon tax impact or change investor sentiment? I don't think it has much of an impact on domestic sentiment but the rest of the world has reacted with disbelief: 'They repealed a... Show More
This dysfunction is draining consumer and business confidence, John Abernethy, CIO, Clime Asset Management. Will repealing the carbon tax impact or change investor sentiment? No - the drawn out political process required dealing with the carbon tax is symptomatic of the dysfunctional governance of the country. This dysfunction is draining... Show More
We believe Australian equities are attractively priced: David Poppenbeek, Head of Australian Equities, K2 Asset Management. At present we are running net exposure at 70%, which is in-line with our 15 year average. We believe that Australian equities are attractively priced at 14.5x next year's earnings. However, we are mindful... Show More
Rate cut still on the cards: Sebastian Evans, NAOS. Domestic equity markets have seen strong demand for companies providing predictable tax effective income streams through dividends. Overall, it is becoming harder to find quality businesses and acquire equity in them at reasonable valuations. For this reason we are running with... Show More
US data surprise puts spotlight on rates: Chris Stott, Wilson Asset Management. Currently we hold around 40% cash, which compares to our long-term average of 33% since inception over 15 years ago. Our cash weighting is a reflection of our ability to find undervalued growth companies that fit our investment... Show More
RTG being treated unfairly by the market: Sebastian Evans, NAOS. Ben's comments are fair although we would argue that this is a lot bigger issue right now for relative managers of money, as opposed to absolute managers of money. We believe the right approach to investing in resource companies at... Show More
BHP franking credits appealing: David Poppenbeek, K2 Asset Management. Over the past 5 years the ASX 200 Industrials index has delivered a total return of 108% whereas the ASX 200 Resources index has generated just 6%. Therefore we would expect that an aggressive bet favouring industrials over resources today will... Show More
Chinese long term approach is a positive for resources: Christ Stott, CIO, Wilson Asset Management. Resources stocks have underperformed in recent years on the back of fears of China coming to a hard landing and the slowdown of projects in Australia. In particular, companies in the smaller end of the... Show More
The Buy Side Brief. Yesterday we released the second edition of our new Buy Side Brief series on Livewire. We asked four leading fund managers - from Platypus, Auscap, Avoca and Eley Griffiths about the recent changes they've made to their portfolios. You can read their answers here: http://eepurl.com/Wzgk5 Show More
The Buy Side Report. Just in case you missed it yesterday, Livewire asked a range of fund managers if there's one upcoming or recent IPO that's caught their attention. Don Williams the CIO of Platypus Asset Management, David Allingham, Analyst at Eley Griffiths, Jeremy Bendeich, CIO of Avoca Investment Management... Show More