Concentrated portfolio change
Our Concentrated Portfolio is an Australian equity portfolio we developed last year at the request of several investors who wanted to invest a portion of their wealth in a strategy aiming for higher returns (with the associated higher level of risk).
One of the stocks in the Concentrated Portfolio was a consumer discretionary name that had faced regulatory issues. We took a small position in the stock, expecting that it would rerate when the new management team restored the confidence of the market. However, there have been stories circulating in the press about further potential compliance issues, so we have decided to exit the position in case there is substance to the rumours. In its place we have invested in a quality consumer staples stock that has derated due to margin issues that we believe will be resolved in the medium term.
Clients who are logged in can access the updated model portfolio files and standard text from our downloads page, and will see the full details of the portfolio changes and suggestions for implementation below.
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This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.
Please note that past performance is not a reliable indicator of future performance.
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