In this recent interview, Ben Rundle, Portfolio Manager here at NAOS Asset Management explains that he sees macro conditions driving the markets currently, with even high-quality stocks selling off. In these conditions, the best approach is to choose sectors with a strong tailwind. One such example is the Australian tourism sector. “A lower Australian dollar, which makes it a lot cheaper for travellers to come here. Conde Nast, a significant travel magazine, rated Australia the number one destination for 2016.” A top pick for the sector is Event Hospitality and Entertainment (formally Amalgamated Holdings). “They own hotels, they have a cinema business as well. When you’ve got such a strong macroeconomic tailwind behind your business, you don’t actually need to do that much right to have earnings growth.” Watch the full interview for his thoughts on China, commodity prices, and how their portfolio is positioned: (VIEW LINK).
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