October, 2020
The Fund returned 2.26% for the month ending 31 October 2020, outperforming the ASX200 Accumulation index by 0.32%.
The Australian High Conviction Fund (“Fund”) is a concentrated portfolio (approx. 25 companies) of our most
compelling equity ideas. The strategy is built on fundamental, deep dive research guided by the philosophy
that ‘every company has a price’.
Top 3 Overweight Holdings (Alphabetical)
*Newcrest Mining Ltd
*OZ Minerals Ltd
*Qantas Airways Ltd
September, 2020
The Fund returned -2.46% for the month ending 30 September 2020, outperforming the ASX200 Accumulation index by 1.21%.
Positive contributors included Qantas, Aristocrat and Amcor. Negative contributors included Virgin Money UK, Oil Search, and underweight positioning in CSL.
COMPANY AND INDUSTRY NEWS The market continues to go back and forth between optimism and pessimism about trends in COVID and the implications for economic growth. The only thing we continue to see is unwavering dedication from Governments to provide assistance to help get the economy back on its feet once mobility restrictions ease. The longer it takes to get back up and running, the more money that will be printed. The biggest trend we are seeing is coming from Governments around the world. Post GFC, monetary policy has been the tool of choice. Post COVID, fiscal policy has been well and truly added. The focus is jobs and the fastest way to get people working is through housing and infrastructure. Time and time again, ex-China infrastructure has promised much, but delivered little. Grandiose promises during elections have often failed to materialise. The difference this time is that there is generally bipartisan support given the alternative to inaction would be a global depression. We are seeing housing booms around the world. The Portfolio is well positioned for continuing Government stimulus given our positioning in cyclicals including resources (focused on base metals and electric vehicle materials), energy (Worley / Oil Search), building (Bluescope / Lendlease) and construction (Downer).
File: https://commentary.quantreports.net/wp-content/uploads/2020/10/202009-Australian-High-Conviction-Fund-Performance-Report.pdfticker: WHT3810AU
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factsheet_url:
https://firetrail.com/products/firetrail-australian-high-conviction-fund/
structure: Managed Fund