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 soft week for the portfolio falling -7.88% while cash sits at just over 9%. It came against a backdrop of weaker markets however a downgrade from EML Payments (EML) yesterday was the main drag for the week – we talked about the downgrade here. Bapcor (BAP) was the only position to contribute positively to performance.
The ASX will be hit again today, and we’re using weakness and our current cash balance to tweak the portfolio – time to sharpen the pencil and focus on likely portfolio moves:
- IVE Group (IGL) $2.00: MM are sitting at breakeven on the portfolio’s position in the integrated marketing business IVE Group. While we continue to like it for income and will retain it in that portfolio, it’s a position we will be using to fund some changes in the Emerging Companies Portfolio.
- Paladin (PDN) 81c: MM’s preferred uranium stock, Paladin is fully funded for a restart at their Langer Heinrich asset. It’s an alternative way to play energy markets that have been heavily sold off in the last week.
- Select Harvests (SHV) $6.40: Australia’s second-largest almond producer, a number of indicators suggesting almond prices are shaping up for a strong rally. We discussed the outlook here.
- Bapcor (BAP) $6.71: MM are sitting at breakeven for the auto accessory business with a 4% weighting. Its resilience in the weakness is a positive sign. We are looking to add to our current 4% weighting.
- Pinnacle Investments (PNI) $9.15: A leveraged play on markets, we like Pinnacle for the breadth of investment streams, alignment with quality managers and further capability to invest.
