The Market Matters Emerging Companies Portfolio targets small & mid capitalisation emerging stocks (ex-100) that show strong underlying growth characteristics – Click here to view
Another soft week for the portfolio down -5.03% while cash fell to around 4%. The carnage in small caps continues and the portfolio for its most part is looking sick. In times like this, patience is key as the fundamentals of many of these stocks have actually improved while the share prices have declined, meaningfully in some names. The biggest drag this week came from our largest position in Aussie Broadband (ABB) who put through a small downgrade. Nitro (NTO) was the standout, rallying 17% on a solid first-quarter update.
Shares in ABB fell much more than the downgrade, the fear being that they’ve bitten off more than they can chew with the Over The Wire (OTW) acquisition. I didn’t get that impression after speaking to management yesterday, it felt like they were being conservative and doing the proper planning before launching the new strategy for the combined entity.
