Where is weakness creating opportunity in the MM International Equities Portfolio?
The International Equities Strategy had a tough February, falling -8.67%, underperforming the MSCI World by -7.69%. No dressing that up – it was a poor month. Weakness has continued, with the portfolio down ~4.5% in March to date. A meaningful pullback, but within our levels of tolerance for a high conviction, growth-focused portfolio (and within historical ranges we’ve experienced in the past).
However, stepping back, the longer-term picture remains solid. Since inception in June 2019, the strategy has returned +19.29% p.a. versus +13.10% p.a. for the benchmark, delivering ~97% cumulative outperformance. Put another way, a $100,000 investment at inception would have grown to $330,000* with the MM strategy versus $228,600 had we simply tracked the MSCI All World benchmark (to end of Feb 2026).
Buying short-term weakness in an uptrend is generally how money is made in markets, and the same is true when backing a portfolio – now looks to be one of those weak points.
- Below we outline the current portfolio, 3-month returns and upside to our (internal) MM target prices.
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Market Matters International Equities Portfolio
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Market Matters International Equities Portfolio
The pullback has been broad, but importantly, targets remain intact, leaving meaningful upside across the portfolio, in our opinion.
- Blackstone (BX) ~$107 vs $200 target → ~87% upside
- Trade Desk (TTD) ~$27 vs $50 target → ~85% upside
- Chipotle (CMG) and JD.com (JD) both imply ~75%+ upside
- Novo Nordisk (NVO) ~55% upside despite near-term issues
- First Solar (FSLR) remains well supported with ~$300 target
- Microsoft (MSFT) still offers ~45% upside and remains a core holding
More defensive additions like Chubb (CB) (~9% upside) and Ashland (ASH) (~38% upside) provide a higher level of predictability, while cash remains high at ~19%, as we look for the opportune times to add to existing positions. Importantly, our conviction remains strong on the overall portfolio that we’re holding.
If pressed to highlight our three best picks in the strategy here and now, we’d opt for: Microsoft (MSFT US), Blackstone (BX US) & UBS Group (UBS), all impacted by fears around AI, private credit, and economic growth.
The bottom line – while periods like this are uncomfortable, it can often be the time to lean into a manager, a strategy or an approach that has delivered over a longer time frame but is having a tough period in the short term.
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*Based on strategy inception return of 19.29% p.a. and benchmark (MSCI All World Index AUD) return of 13.10% p.a. as reported in the February 2026 monthly report. Returns are before management fees and brokerage. Calculated as $100,000 × (1 + r)^6.67. Year-by-year figures are illustrative, compounded annually at the stated p.a. rates. Actual returns will differ due to timing, fees, taxes and platform differences. Past performance is not indicative of future returns. General information only.
