MM has made no secret that we are looking to reduce our tech exposure in the coming weeks/months; looking at XRO, we should have done it earlier! At this stage, XRO is our preferred funding vehicle for a defensive skew, although if Altium (ALU) breaks towards new highs of ~$50, it will enter the frame.
- We hold 5% in ALU and XRO in our Active Growth Portfolio, which is overweight compared to the sector’s 3.5% market weighting.
We are watching the correlation between XRO and TLS, with the latter still underperforming; hence, we aren’t looking to switch just yet. Plus, our “Gut Feel” is the accounting software business that can squeeze further if/when we see a Christmas rally.
MM is considering where to sell XRO
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