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 enjoyed a +3.5% gain last week outperforming the market. As stocks rallied we’ve increased our cash position to 7%. For the month of July, the portfolio added 7.47%.
For the week, the portfolio gains were helped by IGO Ltd (IGO) +8.5%, OLZ Minerals (OZL) +8.2% and Commonwealth Bank (CBA) +5.4% while Aristocrat (ALL) which we trimmed was the only drag falling -0.3%.
The ASX200 has reached our upside target area leaving us neutral at least over the short-term although the day to day market internals feel firm as stocks manage to shrug off bad news, something it certainly wasn’t capable of through May and early June i.e. the markets enjoying a more bullish rhythm for now but things do change as we’ve seen on a number of occasions through 2021/22.
- MM has increased our cash position to 7% and by definition, the portfolios flexibility in the process – note this is not a negative stance just one that affords us the ability to act when a company we like pulls back to a level where we see good risk/reward and value.
- We like the mix of our 17 positions in the portfolio although a couple such as Newcrest (NCM) and to a lesser degree Goodman Group (GMG) the entry levels could have been better in hindsight.
- On the sector front what looks/feels optimum is changing like the weather in today’s environment, we prefer to stand back and look at themes and companies we like and wait for them to enter compelling valuation areas i.e. don’t get dragged into the markets volatile noise.
After the markets rally back towards the 7000 area MM is considering a more defensive skew after being very bullish and long accordingly through late June and July. Hence this morning we’ve revisited Origin Energy (ORG) which we last considered back in early June.
