The Market Matters Emerging Companies Portfolio targets small & mid capitalisation emerging stocks (ex-100) that show strong underlying growth characteristics – Click here to view
A softer week for this portfolio falling -1.08% while some changes during the week saw cash fall to ~12%. We took a good profit on Paladin (PDN) and Money3 (MNY), buying Capitol Health (CAJ), Calix (CXL) & adding to our existing position in Lynas (LYC).
We have 1 standout risk across this portfolio which is very focused on stock specific ideas although it is offset by our relatively large ~12% cash position:
- Emerging companies generally have a high Beta, in other words they fall harder when the market corrects.
The US small caps have been consolidating in a very similar fashion to the S&P500 Value Sector adding confidence to our underlying bullish view towards equities and the higher risk emerging companies space. Obviously in this portfolio by nature individual stocks don’t track the underlying main indices closely unless we enter a “risk off” environment which is not our preferred view at this stage.
