Macquarie (MQG)
What is going on with the sell down of MQG. Good results , banking crisis is subsiding . Why the selling down ?
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Answer
Hi Tony,
We thought it was a good result too, I suspect the market was slightly concerned by the proportion of their earnings that came from the commodities division as a result of volatility caused in part by Russia. If that’s an anomaly, they won’t have that tailwind again, however there are offsets, insofar as less volatility from a broader markets perspective will generally mean more M&A and deal flow , which was soft in the result they delivered. Ultimately, it’s the reason we like the stock, different divisions perform differently at different times and that creates a nice level of diversification in their earnings.
- We own MQG and intend to hold it.
