Skip to Content
scroll

Flagship Growth Portfolio

The Market Matters Flagship Growth Portfolio provides an active approach to investing in ASX listed large cap stocks – Click here to view

The MM Flagship Growth Portfolio slipped -2.65% last week inline with the market while our cash position remains at 1%. Newcrest Mining (NCM) managed to rally +2.3% along with Bank of Queensland (BOQ) +1.4% and TPG Telecom (TPG) +1%, the losers corner was a little more crowded following the markets decline with HUB24 (HUB) -11%, Xero (XRO) -7.8% and BHP Group (BHP) -7.4% catching our attention for the wrong reasons.

We continue to look for a period of outperformance by the growth stocks similar to moves in the US last night where short-covering was evident. Over the next 12-months MM still anticipates treading a cautious path due to the underlying economic headwinds where we will be focusing on well established and profitable companies that have some degree of competitive advantage.

  • If we are correct unprofitable growth / tech stocks should bounce but it doesn’t mean they’re still not too expensive for this stage of the cycle.
  • Hence, after following our plan last week by tweaking our portfolio through selling Woodside Energy (WDS) and increasing holdings in BHP Group (BHP) and Aristocrat (ALL) we need to decide what’s next.
  • If MM is correct and US stocks bounce ~10% the strong likelihood is that the ASX will follow including some battered growth names, our focus will be what and where we reduce such exposure if such a move unfolds.

Three stocks come directly to mind if such an overall market move unfolds i.e. Altium (ALU), HUB24 (HUB) and Xero (XRO) with all 3 down over 20% over the last 3-months – interestingly HUB rallied over 6% yesterday as bargain hunters surfaced. When we go back and look at our performance over the last 12-months one factor keeps resurfacing – we were a little too pedantic at times in taking profit / cutting positions – MM doesn’t intend to repeat these mistakes especially when we believe it’s a rotational market at best.

NB We also are considering our CSR position but that’s not part of todays theme.

Back to top