QBE rose 22% in February after the company announced its 2014 earnings and outlook for 2015

PM Capital

PM Capital

QBE rose 22% in February after the company announced its 2014 earnings and outlook for 2015. Management re-based earnings expectations for 2015 downwards but also de-risked the business to reduce earnings volatility. The stock reacted very positively to this, as the de-risking will make the earnings profile of the business more predictable. We see the de-risking of the business as a long term positive, which limits the downside risk in the stock but are cognisant that this also puts a cap on the upside potential.


PM Capital
PM Capital

At PM Capital we are not afraid to be different, we search the world for undervalued stocks, we avoid the trap of “group think” and prioritise company valuation over all other aspects. Founded in 1998, PM Capital is part of the Regal Partners...

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