Now is the time to look for pockets of opportunity

PM Capital

PM Capital

Uday Cheruvu, Australian Equities Portfolio Manager at PM CAPITAL cautions investors against taking an ‘index’ approach. "We don't think it's a broad-based index opportunity. You don't want to be in the mining side yet; you don't want to be in industrials because it's continuing to deteriorate. Now's the time to look for pockets of opportunity.” Cheruvu says they’ve put some of the cash in the PM CAPITAL Australian Companies Fund to work, buying NAB and Westpac within the last month. ”Whenever the regulator says anything about capital rules, it doesn't matter what it is, people tend to sell. People lose perspective on the fundamental earnings growth of the business, which is what happened with the Australian banks." Some commentators have expressed concern about the sustainability of banks dividends, but he disagrees. "You don't want to be touching the banks if their dividend yield is under risk… but once banks added to their coverage ratios we were broadly happy to buy them again.” Full article in the AFR (subscription required) (VIEW LINK)


We aim to build long term wealth together with our co-investors by finding and exploiting investment anomalies around the world, using a focused, patient and considered approach to finding simple investment ideas.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.