On Wednesday, we switched our tech-facing Altium (ALU) position to Ramsay Healthcare (RHC) with the Healthcare operator having sat on our Hitlist over recent weeks. The move reduced our direct/indirect tech exposure back to 13%, still significantly above the market weighting which is less than 4%. We had adopted a bullish and overweight tech position since Q4 of 2023 and this was the first step of MM migrating our Flagship Growth Portfolio to a more in-line market stance now that bond yields have corrected as we’ve been expecting over the last 6 months. We have touched on this subject a few times this year but as we expect to execute 1 or 2 moves over the coming weeks we believe it’s crucial that subscribers aren’t surprised if alerts do indeed land in inboxes.
- We still own Xero (XRO) (5%), SEEK Ltd (SEK) (3%), and REA Group (REA) (5%).
The correction in short-dated bond yields has provided an excellent tailwind for growth stocks but as we believe they’ve got ahead of themselves in targeting rates cuts in the not-too-distant future we think the best is already in the rear-view mirror suggesting it’s time to take a little risk off the table. It’s important to reiterate that we still like ALU as a business but see less potential upside than with our other 3 holdings over the coming weeks.
- We are looking to reduce our tech exposure further into strength over the coming weeks.
