We were recently asked what we see in Jupiter Fund Management (LSE: JUP), a UK-based business owned in the Montgomery global portfolios. Without giving away our entire analysis, the following note seeks to lay out, in simple terms, why we believe this is a high quality global business that is... Show More
Many investors talk about quality businesses and many, like us, seek to buy these businesses for our clients. But what exactly is quality, what are the signs to look for, and why is it so important? Show More
Look closely, and investors will see that quality stocks are making a comeback after being left by the wayside in the Trump-inspired reflation trade last year. CSL is trading around $128. Ramsay Health Care is back around $70. Amcor is well above $15, and InvoCare is approaching its all-time high... Show More
Owners of high-quality, growing business are starting to look a little nervous following the high-profile falls of Aconex, Bellamy’s, Blackmores, and more. Hyperion Asset Management likes to invest in these kinds of quality, growing businesses, so we spoke to Managing Director, Tim Samway, to hear how he’s been handling sell-offs... Show More
So far, 2016 hasn’t been an easy time for quality-oriented investors. If you look at returns across the ASX, low-quality companies, like many in the Materials and Energy sectors, have provided stellar returns, while high-quality companies have delivered comparatively boring returns. Despite this, we don’t believe it’s time to abandon... Show More
Romano Sala-Tenna, Portfolio Manager at Katana Asset Management, singles out Wesfarmers as a stock with high earnings quality, and particularly the Bunnings segment of the business. “Over the past ten years or so it’s been consistently growing revenue, margin, and profit.” Some other positive attributes he identifies were that performance... Show More
Romano Sala-Tenna, Portfolio Manager at Katana Asset Management, says that many investors are under-appreciating the importance of high-quality earnings. He defines high-quality earnings as being consistent, having a high percentage of recurring revenues, sustainable and transparent, and that the key drivers are within management’s control. He identifies the banks as... Show More