The Market Matters Flagship Growth Portfolio provides an active approach to investing in ASX listed large cap stocks – Click here to view
The MM Flagship Growth Portfolio slipped -1.9% last week basically in-line with the weak market, we are now holding an elevated 14% cash position making us flexible and by definition in “buy mode”. The portfolio’s top performer last week was Altium (ALU) +13% following a strong result but unfortunately, this was offset by a -15.3% fall by TPG Telecom (TPG) following its earning numbers. Elsewhere Xero (XRO) -10.9% was a standout drag on the portfolio while Woodside Energy (WDS) helped the cause by rallying +5.1%, at least we trimmed our XRO exposure in the first few days of the month!
At this stage, we are comfortable holding a decent cash position making us flexible if the current pullback does surprise on the downside but we do intend to start increasing our market exposure to weakness, we have a number of stocks on our Hitlist which have been discussed over recent weeks including the following five:
- Seek (SEK), REA Group (REA), Wistetech (WTC), National Australia Bank (NAB) and Pendal (PDL).
Overall we continue to like the mix of our 17 positions in this portfolio although we continue to review our holdings, particularly those which are struggling in a market that continues to reward quality & strength while there remains a distinct absence of “bottom pickers” in companies that aren’t delivering on the corporate level. Last week we sold one of our worst 2 holdings from a “marked to market” perspective, the Bank of Queensland (BOQ), and it’s already rewarding our decision by dropping another -6.8%.
- Elsewhere we have Newcrest Mining (NCM) firmly on watch, the gold miner continues to drift lower but at this stage, we can see gold trading higher into October hence we will give it a little more room but it remains firmly on the chopping block.
