How should we handle the recent rally in SEK, AD8, HUB, REA & ALL?

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Question asked 05/11/2022

How should we handle the recent rally in SEK, AD8, HUB, REA & ALL?

I'm curious about what MM is thinking/planning in terms of some of the recent winners and where it sits between thinking long-term and trying to take advantage of short/medium term volatility. Is MM likely to trim /sell some of the recent winners into current strength with the idea of buying them back at lower prices or are these stocks that MM wants to own regardless of short-term fluctuations. I'm talking about SEK, AD8, HUB, REA, ALL? Thanks!

Answer

Hi Josh,

We have consistently said 2022 was a year where we wanted to be more active because of the markets prevailing volatility due to large macro shifts. We are seeing “mini cycles” in the market which provide attractive risk/reward and as investors we are aiming to capitalize on this by thinking ahead.

At this stage we have positioned ourselves for a rally to at least the 7200 area for the ASX 200 led by the stocks you’ve mentioned hence at this stage we have no intention of trimming the holdings, but we will be active if/when the market finds itself higher into Christmas – the biggest question will be when to cut if we are wrong!

With regard to the stocks mentioned, none of them are sacred and we will not hesitate to sell them if they no longer stack up from a risk/reward perspective.

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SEEK Ltd (SEK)

LAST UPDATED 04/11/2022 16:24

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