Some growth names continue to deliver

Glennon Capital


We tend to have both value and growth stocks in the portfolio, though we prefer to think about the businesses individually, not through the value/growth prism. We also focus on the long term; so we have not made many changes to the portfolio. We may own a growth business because we believe that a valuation is warranted given the growth and quality of earnings. However, the higher the growth the quicker the earnings or cash flow multiples will fall. In three years a growth stock may have multiples below what is now seen as value. Some of the higher growth stocks that had performed well in 2015 were already very well recognised by the market and were trading on big valuations. However some higher growth names, like Mayne Pharma (MYX), continued to deliver on expectations. For value stocks, we assess and reassess how and why these often out of favour stocks will be re-rated. STW Communications (SGN) is in the value camp and trades on undemanding multiples. We see solid earnings growth driven by the top line and synergies. (Alex Shevelev - Portfolio Manager)

1 topic

1 stock mentioned

Glennon Capital
Fund Manager

Glennon Capital was founded in 2008 by Michael Glennon. Previously, Michael worked with some of the best institutional small company fund managers in Australia. In 2007, he received the IMCA Money Management Fund Manager of the Year (Small Cap)...


No areas of expertise

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.