George Boubouras, Chief Investment Officer of Contango Asset Management, has called for a re-rating on large-cap stocks. After underperforming significantly in the period to 30 June, he said “the worst is behind us” for large-cap stocks. The recent period was “the best performance of small-cap & micro-cap relative to the large caps that we’ll see for some time.” One large-cap on his radar is Woolworths, which he called “one of the most shorted large-cap stocks in Australia.” He said the closing of underperforming stores was a positive move, but structural challenges remain. While they’re still underweight in the large-cap portfolio, they’re closely investigating whether now is the time to get in. Full interview: (VIEW LINK)
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