Bullish Sandfire (SFR)?
Hi, Can I ask how MM went from selling SFR Text on 30/10/24 to now long and bullish SFR into 2025. When/How did this change? Kind Regards Peter
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Answer
Hi Peter,
A great question which allows us to explain MM’s portfolio management, firstly the alert:
Alert: “SFR has been a strong performer and we remain bullish Copper, however, slight weakness in yesterdays production numbers and recent outperformance by SFR relative to global peers has us trimming our position, moving from a 5% target weight down to a 4% target weight.”
Our position in SFR was up ~70% and we felt it was prudent to spread our risk across the resources space into the US election and potential Chinese stimulus, hence the small tweak. If we were no longer bullish SFR we would have cut the position all together.
- MM often scales into and out of positions and we have indeed done this a few times with SFR over the years remembering that miners are cyclical in nature.
If/when we turn from bearish to bullish on a stock, or vice versa, which does happen, the reasoning will be provided.
