• IMDEX could be set for a significant step-up in earnings growth. Hear directly from incoming CEO Paul House in this video: watch here

Answer to our Melbourne Cup day puzzle


Answer to our Melbourne Cup day puzzle

Last Tuesday we thought we would have some fun. We posed the following puzzle to our readers who were invited to submit their answers on the blog. Thank you to everyone who took the time to submit an answer!

Now, we showed the chart below and asked readers to guess which company corresponded to stock A; and which to stock B. The only additional piece of information we told you was that one of them was Amazon (NASDAQ: AMZN); and one of the was a stock from the Montgomery Global portfolio.

Screen Shot 2018-11-12 at 12.26.10 pm

Well, here is the answer (as guessed correctly by a couple of our readers):

Screen Shot 2018-11-12 at 12.26.46 pm

We think this is an interesting observation. High-flying tech stocks like Amazon typically capture the headlines. Yet there are wonderful (and often smaller) businesses out there that are quietly going about their creation of enormous value for shareholders.

We continue to own Insperity in our Montgomery Global portfolios. Their most recent result reported just days ago was stellar. Furthermore, and as suggested by one of our readers, we have indeed taken the opportunity during the October pull-back to add to our position in the stock. We believe the business remains materially undervalued today.

Thanks again for your participation!

The Montgomery Global Funds own shares in Insperity. This article was prepared 06 November 2018 with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade Insperity you should seek financial advice.


Andrew Macken is the Chief Investment Officer of the Montaka funds and the Montgomery Global funds. He established MGIM in 2015 in partnership with Montgomery.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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  1. I’m a holder in the global fund, just wondering what your thoughts are on NSP now? It’s price decline wasn’t mentioned in the October newsletter and it’s no longer in the funds top 10

    • Hi Rhys,
      Thanks for the message.
      We cut NSP to our smallest position in the days prior to its result in November. We are assessing it at present. We will address this in our November letter.
      All the best,

  2. Stanley Seneczko

    Hi I’m a member in the global fund,I have a list of stocks that may be of interest.
    Korea Telecom,Interxion Holding NV,Zayo Group Holdings Inc,Equiniti Group Plc

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