We continue to look for companies with strong balance sheets and solid growth profiles that are mostly independent of the economic cycle

In February the CTN investment portfolio returned 9.9%, Best performers included Mayne Pharma (MYX, which rose 52%) after they announced the acquisition of Doryx from its distribution partner Actavis. Other major contributors over the month included GBST (GBT, 32%), Altium (ALU, 34%), Sino Gas and Energy (SEH, 48%) and Slater and Gordon (SGH, 22%). Outlook for small industrials is solid with the low interest rate and lower currency environment supporting earnings. However, without the strong cyclical upswing we continue to look for companies with strong balance sheets and solid growth profiles that are mostly independent of the economic cycle. We have also introduced some more defensive companies, including REITs and infrastructure. Small resources should continue to underperform. We remain underweight Energy based on our negative view on oil prices and, likewise, we remain underweight iron ore exposed sectors including mining and capital goods. Despite this underweight, we continue to monitor for value opportunities where the structural outlook for the company is solid. We are also looking for companies exposed to particular commodities that offer unique opportunities. Full portfolio update (VIEW LINK)


MORE ON



Contango uses a combination of top down and bottom up analysis to identify the most attractive investment opportunities in the Australian share market. Contango's Business Cycle approach enables us to shift between growth and value depending on...

Expertise

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.