The Market Matters International Equities Portfolio is a high conviction direct international equities portfolio that targets well known global brands – Click here to view
The MM International Equities Portfolio had a positive week up by +0.41% including the impact of a stronger AUD which took a significant 2.13% away from portfolio returns. Cash sits at 4% having added HCA Healthcare (HCA US) to the portfolio last week with the position rallying ~6% since purchase. Elsewhere, Wells Fargo (WFC US) +5.89% had a solid week on a good earnings update while PayPay (PYPL US) is recovering from a low base, adding +6.38%. On the flipside, Alibaba (BABA US) fell -6.24% and Alphabet (GOOG US) declined by 2.45%.
There are two positions that we are looking to add to the International Equities Portfolio given recent pullbacks, however, the harder question is what to cut to fund them. We are short-term bullish on technology however the portfolio is overweight on both Asian-facing tech & e-commerce. For that reason, we are likely to scratch our Hong Kong-based position in Tencent (700 HK) for a ~13% loss and retain Alibaba (BABA US) and JD.com (JD US), using the funds to allocate to Exxon Mobil (XOM US) and Freeport McMoRan (FCX).
