Alex Leyland, Portfolio Manager at Leyland Private Asset Management, likes Computershare (CPU) as a defensive play leveraged to rising US interest rates
Alex Leyland, Portfolio Manager at Leyland Private Asset Management, likes Computershare (CPU) as a defensive play leveraged to rising US interest rates. The services provided by Computershare are non discretionary for ASX listed companies making the earnings very resilient in challenging markets. However, the Company now earns 80% of its revenue from offshore and in particular the US. Computershare holds cash on behalf of companies as they prepare to pay dividends to investors. CPU is able to put this cash on deposit and keep a margin on the interest that is earned during this time. Leyland says Computershare is an attractive exposure to rising US interest rates and believes that this leverage helps to justify the high PE the business commands. Here is a link to the full discussion on Computershare.
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