What we’ve been buying in February

We believe that February's market reaction can be attributed to negative investor sentiment rather than fundamental problems. We view these situations as opportunities and have been buying companies like SurfStitch, iSentia and Vita Group aggressively. We initially participated in the private equity sell-down of iSentia at AU$3.25 back in August 2015 and had reduced our holding to negligible levels as it reached a high of AU$4.90 in December. We then bought back in around the AU$4.20’s level in February, expecting strong trading. The result was slightly below analysts’ expectations and the business also suffered from deciding to invest ahead for growth in its recently purchased King Content business. We purchased more stock around AU$3.40 and below as we believe iSentia is one of the highest quality businesses on the ASX and it is now trading at one of the lowest multiples since listing. (VIEW LINK)