One stock we follow at Montgomery is Infomedia (ASX: IFM). There are a few things we like about Infomedia: Continue…

by Tim Kelley Posted in Companies, Insightful Insights, Manufacturing.

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Atlantic Salmon producer, Tassal Group (ASX: TGR) has caught our eye recently. Although the business does not have a great economic track record, it appears that performance has been steadily progressing, following a period of substantial capital investment and management focus, and the half year result just released shows a continuing improvement trend. Continue…

by Tim Kelley Posted in Companies, Consumer discretionary, Manufacturing.

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We have found the market to be a little frustrating in recent times. Through the various market ups and downs the sort of high quality companies we like to invest in have generally remained well-supported, whereas many of the lower-quality companies – a large number of them related to resources, have been getting cheaper.  Given the uncertain prospects for this latter group, our overall feeling is that the market does not offer particularly good value at the moment, and we have a significant proportion of our funds in cash. Continue…

by Tim Kelley Posted in Investing Education, Market commentary.

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Among the biggest casualties of falling resources capex have been the various engineering, contracting and construction firms that provide services to the resources sector. Monadelphous (ASX: MND) is a case in point: With strong demand to fuel its growth, the Mondaelphous share price rose 50-fold in the decade leading up to 2012. Over the last few years however, a decline in earnings has seen the share price fall by around 70 per cent – a painful drop in any language. Continue…

by Tim Kelley Posted in Energy / Resources, Insightful Insights, Property.

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In these highlights from Your Money Your Call, Tim Kelley discusses expectations around quantitative easing out of the European Central Bank and attractive companies in the Australian market. Watch here.

by Tim Kelley Posted in Companies, Insightful Insights, Investing Education, TV Appearances.

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Bitcoin is one of the more interesting innovations we have seen in financial markets in recent years. The digital currency shot to prominence in late 2013 when the price rocketed to above US$1000, and a whole new industry of ‘bitcoin mining’ emerged in response to the elevated prices.

Websites that allow “investors” to trade currencies and commodities have also moved to capitalise on the excitement by offering their customers the ability to trade Bitcoins at the click of a mouse. More recently, the way to profit from Bitcoins has been to go short, with the price falling back to around $200 more recently. Continue…

by Tim Kelley Posted in Foreign Currency, Insightful Insights.

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As fund managers go, Montgomery Investment Management is not a large operation. With around $0.6 billion under management, it trails well behind the big name fund domestic managers with many billions of dollars invested in the Australian market.

That’s partly because we’re relatively new – the longest running fund we have is just over 4 years old – but it’s also our goal to remain small. Continue…

by Tim Kelley Posted in Montgomery News and Updates.

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One of our peeves at Montgomery is fund managers who ‘hug’ the index. A manager might for example take an underweight position in BHP by allocating 5 per cent of a portfolio to it, when BHP makes up around 7 per cent of the index. This leaves them with a 2 per cent underweight position, which can fund an overweight position in some other large cap stock. If they charge investors a fee of 100 basis points for this type of ‘active’ management, the investors are getting a raw deal. Continue…

by Tim Kelley Posted in Insightful Insights, Investing Education, Value.able.

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Like many things in financial markets, exchange rate movements are very difficult to predict. At Montgomery, we don’t claim to possess unique insight into future exchange rates, and so they typically don’t play much of a role in our investment process.

Having said that, in recent years it has seemed to us – as well as many others, including Glenn Stevens – that the $A was at levels that would be difficult to sustain long term, and in structuring our portfolios we have tended to look a little more kindly on high quality businesses that generate significant revenues offshore. Continue…

by Tim Kelley Posted in Insightful Insights.

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