The flagship Market Matters Portfolio provides an active approach to investing in ASX listed large cap stocks – Click here to view
The portfolio fell 3.99% over the past week as we suffered from our bullish & pro recovery skew, the ASX200 outperformed us only falling 2.23%. Cash sits at ~6%. We enjoyed CSL Ltd (CSL) and Altium (ALU) gaining over 5%, or more, but on the other side of the ledger OZ Minerals (OZL), IGO Ltd (IGO), Whitehaven Coal (WHC), NRW Holdings (NWH), BHP Group (BHP) and Zip (Z1P) all declined by the same degree, 5 of the 6 are not surprisingly skewed towards the resources space. Last week we pointed out 2 major risks to this portfolio with the 2nd one showing its influence as Evergrande unwound risk markets:
- Risk 2 : MM has migrated this portfolio to be very overweight the resources names.
At this stage we’re comfortable with our positioning but if we are correct into 2022 subscribers should expect a noticeable migration down the risk curve into strength e.g. less resources and more healthcare. However at this stage we have 2 stocks on our menu as we look to increase risk into current market weakness:
- OZ Minerals (OZL) – we are looking to increase our holding from 3% to 5% into the current pullback looking for over 20% upside.
- IGO Ltd (IGO) – Similarly we are looking to increase our holding in IGO from 3% to 5% into the current pullback looking for fresh 2021 highs.
In both cases the stocks are holding above our ideal entry level although OZL is closer. At this stage we are leaning to a one at a time approach just in case stocks turn hard without us!
MM is looking to add to our IGO and OZL holdings
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