scroll

GGOV and your 03.08.23 comments on Bill Ackman

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 04/08/2023

GGOV and your 03.08.23 comments on Bill Ackman

Hi MM, I'm not sure if I am doing something wrong but I cannot find the same level of info on the MM website on GGOV as I can for most stocks. In any event, as far as I am aware (am I correct?), MM hold a 10% weighting in GGOV in the Global Macro ETF Portfolio (or is that now the Market Matters Core ETF Portfolio - I couldn't see GGOV in there?), and remained long and bullish on GGOV as recently as June. GGOV is, to my understanding, a mix of 20-30 year bonds with an average maturity somewhere in the middle. In light of Bill Ackman's views and approach as outlined by MM yesterday, including shorting 30-year Treasuries - and noting your recent comments and views on yields - are you still long and bullish GGOV? Does Bill's views/approach change your view/comfort levels at all, etc? Thanks, Darren

Answer

Hi Darren,

There is not the same information of GGOV on the site as it is an ETF and therefore earnings and consensus data is not available. In terms of the Macro ETF portfolio, that is no longer in existence, we wrapped it up in April due to subscriber demand for a simpler portfolio that used ETFs to create a broad asset allocation framework. In other words, the Core ETF Portfolio is an easy to use, more passive portfolio that is broadly considered a balanced approach, with some active decisions more around upweighting and downweighing particular asset classes.

Regarding our comments on Thursday PM from Bill Ackman (here). The GGOV does indeed own longer dated US Treasuries running with a 25 year average maturity. Longer dated bonds reflect longer dated issues and we are not bullish on the GGOV, although we are not as negative as Bill, who is shorting the 30-year as a proxy to hedge a long equity portfolio (on his belief that 30-year yields will continue to rise). We believe his views have merit and we do own Pershing Square Capital in our International Equities Portfolio.

Latest Reports

Alerts 15/01/2025

Trade Alert – Active Growth & Emerging Companies Portfolio

We are making two changes to the Active Growth Portfolio today, with one also applying to the Emerging Companies Portfolio.

Morning report 13/01/2025

What Matters Today: ASX set to slide as bond yields march higher

Usual Market Matters reports will recommence on Monday the 20th January, however, a big move on Friday night in the U.S and a SPI Futures pricing a decline of 71 points / 0.86% this morning suggest an update is warranted. Markets begin 2025 with great expectations as anticipation of US tax cuts and pro-business deregulation, a continued economic soft landing, ongoing rate cuts in the US and the start of a cutting cycle in Australia.