Fortescue (FMG)
Hi James, Shawn & Team, Given the current weakness in the price of FMG, when would you consider buying the stock to add to your current position in the Income Fund? Cheers Jeremy
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Answer
Hi Jeremy,
We already hold 4% of our Active Income Portfolio in FMG, which is enough for a commodity dependant resource stock hence we are unlikely to tweak this higher.
However, we are also watching its current decent for our Active Growth Portfolio, with a few moving parts in our thought process:
- We think FMG will offer excellent value if it dips back towards $15 in the coming months.
- However, we already have iron ore exposure through heavyweight BHP and out of favour Minerals Resources.
- We are unlikely to increase our Iron Ore exposure in aggregate beyond our current weightings, meaning FMG would only be considered as part of a switch.
