Emerging Companies Portfolio – Amendments

Zip Co (ZIP) has seen strong growth in the US market and the stock has been bid up accordingly. A pullback below $3 now has us cautious, and we’re locking in profit.

We have a residual 3% position in Austin Engineering (ANG) that we’re taking profit on, having sold a first tranche around 65c. Their FY25 guidance in August turned us neutral the stock, with funds to be used elsewhere.

FY25 is a year of transition for Audinate (AD8), and while this is not new news to the market, the level from which they start growing again is highly uncertain (as confirmed by the CEO in a recent fireside chat with UBS). We will likely own AD8 again in the future, but the next 6-9 months simply carries too much uncertainty.

We are bullish on the broader mining space over the coming years, with the energy transition driving huge investment at a time when running mine operations as efficiently and sustainably as possible becomes increasingly important – RPM Global’s (RUL) suite of software solutions helps mining companies do this.

Hansen Technology (HSN), the technology provider that underpins billing for key services like electricity, gas & pay TV has sat on the Hitlist for the Emerging Companies Portfolio for some time now. Strong guidance at the companies AGM was a positive, however, shares have pulled back following the CEO Andrew Hansen’s sale of 7m shares worth $38m. He still holds 20m shares or 10% of the company, worth $74m. This remains enough of an incentive in our view.

We are increasing our weighting towards AIC Mines (A1M), increasing by 1% targeting a 4% portfolio weighing. We are bullish on Copper and AIC has good prospects.