Emerging Companies Portfolio

For those seeking higher growth investments

15.35% Returns pa since inception to 31-03-22

About The Portfolio

The newest Market Matters Portfolio that searches for small & mid capitalisation emerging stocks (ex-100) that show strong underlying growth characteristics. This is a higher risk portfolio and investors should expect greater volatility in returns.

**Portfolio Performance** UPDATED 30/04/2022 17:00
Portfolio	1M	3M	6M	1Y	2Y pa	ITD PA*
Emerging Companies	-5.19%	-4.77%	-14.44%	-6.84%	16.26%	11.73%
Target Return 12%	1.00%	3.00%	6.00%	12.00%	12.00%	12.00%
Difference	-6.19%	-7.77%	-20.44%	-18.84%	+4.26%	-0.27%

* Inception date 31/01/2020

**Portfolio Holdings** UPDATED 17/05/2022 17:00 trade now
COMPANY CODE	STOCK NAME	WEIGHT (%)	RISK	TIME HORIZON	ENTRY DATE	ENTRY PRICE ($)	LAST PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
ABB	Aussie Broadband	8	Moderate	Medium	25/11/2021	4.82	4.12		-14.52
ABY	Adore Beauty Group Ltd	5	Moderate	Medium	23/10/2020	6.75	1.42		-78.96
AD8	Audinate	7	Moderate	Medium	04/11/2021	8.57	5.85		-31.74
ASB	Austal Ltd	4	Moderate	Medium	22/06/2020	3.3	1.99	0.14	-35.61
BAP	Bapcor	4	Moderate	Medium	8/12/2021	6.78	6.33	0.09	-5.31
CAJ	Capitol Health	5	Moderate	Medium	08/09/2021	0.4	0.33	0.02	-12.5
CXL	Calix	5	High	Long	13/09/2021	4.22	7.31		73.22
DUB	Dubber Corp	6	High	Medium	06/10/2021	2.81	1.01		-64.06
EML	EML Payments Ltd	6	High	Medium	03/03/2020	3.36	1.49		-55.8
LYC	Lynas Rare Earths Ltd	4	High	Medium	11/05/2022	8.6	9.81		14.07
NTO	Nitro Software Ltd	6	High	Medium	9/06/2021	2.99	1.33		-55.69
PBH	PointsBet Holdings Ltd	6.67	High	Medium	29/04/2021	12.29	2.56		-79.17
PDN	Paladin Energy	4	High	Medium	27/04/2022	0.79	0.7		-11.39
PNI	Pinnacle Investsment	6	Moderate	Medium	24/03/2022	9.58	8.34		-12.94
PPS	Praemium Ltd	4	Moderate	Long	29/04/2021	0.785	0.62		-21.02
STA	Strandline Resources Ltd	3	High	Medium	22/06/2020	0.25	0.38		52
SHV	Select Harvests	4	Moderate	Medium	27/04/2022	6.39	6.2		-2.97
TYR	Tyro Payments Ltd	5	High	Medium	31/03/2020	1.87	1.08		-42.25
Z1P	Zip Co Ltd	3	Moderate	Medium	31/03/2020	4.04	0.94		-76.86

Portfolio cash position: 4.33%

**Recent Sales** UPDATED 11/05/2022 17:00 trade now
Company code	STOCK NAME	WEIGHT(%)	RISK	TIME HORIZON	EXIT DATE	ENTRY PRICE ($)	CLOSE PRICE ($)	DIVIDENDS ($)	GAIN / LOSS (%)
WSP	Whispir	4	High	Medium	11/05/2022	2.26	1.03		-54.42
IGL	IVE Group Ltd	5	Moderate	Medium	27/04/2022	2.31	1.98	0.32	-0.43
CRN	Coronado Global Resources Inc	6	High	Medium	09/03/2022	1.09	1.97		80.73
PDN	Paladin	6	High	Medium	04/03/2022	0.74	0.72		-2.7
SRG	SRG Global Ltd	5	Moderate	Long	31/01/2022	0.56	0.46	0.01	-16.96
SSG	Shaver Shop	5	Moderate	Medium	31/01/2022	1.06	1.13		6.13
LYC	Lynas Rare Earths Ltd	6	Moderate	Medium	8/12/2021	5.51	9.27		68.24
PLS	Pilbara Minerals	4	Moderate	Medium	8/12/2021	1.87	2.46		31.55
ASB	Austal Ltd	3	Moderate	Medium	25/11/2021	3.3	1.88	0.1	-40
KGN	Kogan.com Ltd	5	Moderate	Medium	11/11/2021	7.89	9.15	0.21	18.63
WZR	Wisr Ltd	5	High	Long	04/11/2021	0.27	0.255		-5.56
RSG	Resolute Mining Ltd	4	High	Medium	06/10/2021	0.635	0.44		-31.1
MNY	Money3 Corp Ltd	4	Moderate	Medium	13/09/2021	2.46	3.5	0.26	52.85
PDN	Paladin Energy Ltd	6	High	Medium	08/09/2021	0.48	0.95		97.92
TPW	Temple & Webster Group Ltd	5	Moderate	Medium	12/08/2021	10.53	12.35		17.28
RHP	Rhipe Ltd	4	Moderate	Medium	06/08/2021	1.86	2.53	0.05	38.71
Z1P	Zip Co Ltd	3	Moderate	Medium	23/07/2021	4.04	7.13		76.49
OPY	Openpay Group Ltd	3	High	Medium	9/06/2021	1.21	1.55		28.1
MLD	MACA Ltd	4	Moderate	Medium	29/04/2021	1.37	0.945	0.04	-28.1
BAP	Bapcor Ltd	6	Moderate	Medium	14/04/2021	4.01	7.95	0.24	104.24
ORE	Orocobre Ltd	5	Moderate	Medium	10/03/2021	4.41	5.98		35.6

OPINION
ACTION

Opinions for stocks held in the Emerging Companies Portfolio

19/05/2022 09:30

Select Harvests (SHV) $6.37

Today we have started with lesser known Victorian based $770mn almond producer SHV, which is showing encouraging signs of finally regaining its mojo after being hammered by falling almond prices. We believe this cyclical story will turn around sooner rather than later helped by the tailwind of general food inflation, we like it at today’s levels but especially if the current weakness in US stocks sends it down in sympathy towards $6.

18/05/2022 09:38

Adore Beauty (ABY) $1.35

Australia biggest online beauty retailer, Adore Beauty (ABY) has been one of the most disappointing stocks we’ve owned in the past few years, buying in the IPO at $6.75 and still holding today. Back in 2020, they raised ~$270m giving it a market capitalisation at listing of $635m. The stock rallied initially to hit a $7.42 high, before sliding ever since.

18/05/2022 09:37

Emerging Companies Portfolio

The portfolio added +0.76% for the week while cash sits around 4%. Our most recent purchase in Lynas Rare Earths (LYC) was the top performer up by +9.53% while Praemium (PPS) +7.96% & Audinate (AD8) +6.10% were also strong. Zip Co (Z1P) was down -11.54% and PointsBet (PBH) fell -6.74% to be the biggest drags.

17/05/2022 17:13

Calix (CXL) $6.93

CXL +4.21%: Announced today that they (along with Pilbara Minerals (PLS) had received a $20m Government grant under the Modern Manufacturing Initiative – in short, CXL will help to decarbonise the electrification pathway as Australia positions itself to ‘value-add’ in the production of key commodities. CXL is a very difficult stock to value which makes it heavily exposed to sentiment shifts – in early March shares were $6.12 before rising...

17/05/2022 09:08

Aussie Broadband (ABB) $4.06

Last month saw the fast-growing telco fall ~40% on a downgrade that was a fraction of that amount. We believe this outsized fall creates an opportunity for 3 key reasons:

11/05/2022 14:15

Emerging Companies Portfolio – Amendments

We are cutting Whispir (WSP and buying Lynas (LYC)

11/05/2022 09:36

Calix (CXL) $7.11

The environmental solutions company has been a standout performer in the portfolio in recent months but took a hit in the last week. Shares fell despite positive news regarding its work in antimicrobial resistance. The company signed on with the Australian Government to be a part of their Solving Antimicrobial Resistance in Agribusiness, Food and Environments (SAAFE) research push. While a small...

11/05/2022 09:35

Emerging Companies Portfolio

A soft week for the portfolio down -7.87% while cash is sitting around 4%. Performance was weighed on by further broad-based weakness in small caps – the small-cap index down by a similar magnitude. Aussie Broadband (ABB) was the standout, managing a 2.02% gain while Calix (CXL) was the weakest in the portfolio falling 17.33%. Selling has been savage in the small end of the market...

04/05/2022 09:36

Bapcor (BAP) $6.40

Auto parts business Bapcor presented at the Macquarie Investor Conference yesterday with shares weaker on the day. The presentation came with no surprises which, in our view, should be more positive for the stock. They maintained guidance, and have done so now since the AGM in October despite a change in CEO. It also shows the business has returned to growth in the second half given the slow start to the year. Sales are up 3% for the 9 months to March, in line with consensus estimates.

04/05/2022 09:35

Emerging Companies Portfolio

Another soft week for the portfolio down -5.03% while cash fell to around 4%. The carnage in small caps continues and the portfolio for its most part is looking sick. In times like this, patience is key as the fundamentals of many of these stocks have actually improved while the share prices have declined, meaningfully in some names. The biggest drag this week came from our largest position in Aussie Broadband (ABB)...