Investors in self-managed super funds (SMSFs) don’t seem to ascribe to traditional approaches of modern portfolio theory. According to its architect, Harry Markowitz, investors can design an ‘optimal’ portfolio to maximise returns by taking on risk – and risk can be managed through diversification across asset classes. Show More
Volatility is a fact of investing in financial markets. But rather than working against it, Bill Pridham, Co-Portfolio Manager at Ellerston Global Investments, says that savvy investors can make volatility work in their favour. For businesses whose earnings are not linked to the economic cycle, market volatility can provide an... Show More
10 years into the recovery, and with valuations close to or at historical highs, there’s little denying that we’re getting late in the cycle. However, Amit Lodha, Portfolio Manager at the Fidelity Global Equities Fund, says that valuations are only half the story. Show More
When looking for potential problems in a company, the first place to look is the balance sheet. Amit Lodha, Portfolio Manager at the Fidelity Global Equities Fund, says that when looking for problems in the equity markets, investors should watch the markets’ ‘balance sheet’ – fixed income markets. Show More
TripAdvisor is the world’s largest travel site with over 600 million reviews covering 7.5 million accommodations, airlines, attractions, and restaurants. TripAdvisor drives more traffic through its website than its competitors, with approximately 455 million average unique monthly visitors. Show More
Despite political tension and underperformance of the European Financials sector in the June quarter, results in 2017 and the first quarter were solid. We saw upgrades for the European banking sector through 2017 on the back of improving loan losses and continued uptick in lending growth. The banks are also... Show More
Business profitability does not revert to the mean. The opposite is true, but only for the best, most profitable businesses. Aversion to the mean is asymmetric. Why? Improvements in productivity have accrued almost exclusively to the most productive businesses. Our conclusion – own only the best and forget the rest. Show More
The arguments for using Listed Investment Companies (LICs) are numerous and the burgeoning LIC offering on the ASX means investors now have more choice than ever. One of the biggest frustrations for many investors is the fact that LICs will often trade at a discount to their Net Tangible Assets... Show More
As 26th President of the USA, Teddy Roosevelt said, “In any moment of decision, the best thing you can do is the right thing…the worst thing you can do is nothing.” Last month - where we set course for the rest of 2018 with our strongest views - one of... Show More
In the last part of this video series, we discuss how we are finding opportunities in Asia that may be surprising. Show More
Towards the end of any cycle, as investors get confident and start to ignore risks, some trades can become overcrowded. What starts out as attractive returns can quickly become hot, burning investors who get caught up in the hype. In the 90s it was internet stocks, in the 00s it... Show More
In part 3 of this video series, we discuss some of the key risks associated with investing in Asian markets, which investors need to be cognizant of. Show More
Global small and mid-cap companies (SMID) can complement and diversify existing exposure to mega and large-cap companies, as well as reduce exposure to potential crowding-risk related to heightened passive flows. Below we highlight key characteristics of the asset class, and illustrate our selection process using two company examples. Show More
Asia is offering compelling investment opportunities, though not necessarily in the places one might expect. Fundamental conditions within the region have improved significantly and valuations remain undemanding, particularly relative to the later-cycle US market. Show More
The notion of global investing is not what it used to be just 10 years ago. Rapid advancements in technology, free trade agreements and the rise of multinationals in emerging markets has transformed the structure of the economic world today, allowing companies to compete for customers, labor and capital... Show More
In our first monthly letter for the year, we highlighted that 2018 was unlikely to be a ‘set and forget’ year for investment strategy. As we approach the second half of 2018, macro uncertainty and cascading geo-political risks continue to impact markets and seem likely to befriend us for the... Show More
April was a volatile month indeed – or so you would think if you have been following the news. While sensationalised reporting generates readership, a comprehensive assessment of the data often doesn’t support the narrative. Show More
The following is an extract from a note that was recently sent to investors in the Montaka Global Fund. There is a famous quote attributed to Ray Kroc, the founder of McDonald’s (at least as we know it today): “The key to success is being in the right place at... Show More
Long before the term disruption was popularised by Silicon Valley, high quality business managers have been alert to the existence of change. In fact, Joseph A. Schumpeter, in Capitalism, Socialism and Democracy noted; Show More
Franking credits, income levels and home bias are just 3 reasons why Australian investors have such a love affair with domestic markets. However, with Australia’s top 6 yielding stocks providing approximately 50% of ASX200 Income, investors are exposing themselves to dangerous levels of concentration risk. Indeed if you held the... Show More
