Investing Education
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What risk are they managing?
Tim Kelley
December 23, 2014
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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Should you ignore the hype?
Scott Shuttleworth
December 19, 2014
TPG Telecom Limited (ASX: TPM) has been sold off sharply over the past few days presumably post the Government’s response to the Vertigan Panel’s review of the National Broadband Network & telecommunications industry which you can find here.
The report contains a lot of material, an analysis of which could extend for several pages, so below we attempt a more concise review of some of the changes and their potential implications for TPG as we currently see them. continue…
by Scott Shuttleworth Posted in Insightful Insights, Investing Education, Technology & Telecommunications.
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Sirtex Medical vs BTG?
Russell Muldoon
December 18, 2014
We have watched the share price fall in Sirtex Medical over the past week with some interest, and whilst we don’t take our cues from price action alone, we did a fair amount on enquiry as to what had spooked investors over such a short space of time. continue…
by Russell Muldoon Posted in Health Care, Insightful Insights, Investing Education.
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Navigating 2014 – the winners and losers
Ben MacNevin
December 11, 2014
A key requirement to generating long-term returns is minimising losses, or what we like to call avoiding the landmines. As the latest results demonstrate, The Montgomery Fund has done a superb job at navigating the minefield that was 2014.
There was a clear divergence in the sectoral performances of the S&P/ASX 200 in 2014. Let’s first examine the sectors that are trading below the levels from the start of the year. continue…
by Ben MacNevin Posted in Insightful Insights, Investing Education.
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Warning – don’t panic.
Tim Kelley
December 10, 2014
There have been volatile times recently on the ASX. With prices for oil, iron ore and coal falling sharply, the mood in the resources sector has turned decidedly sour. Further, the negative mood seems to have been adopted more broadly by the market, with a wide range of stocks showing meaningful price declines. continue…
by Tim Kelley Posted in Insightful Insights, Investing Education, Market Valuation, Value.able.
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Eco growth, is it slowing?
Russell Muldoon
December 10, 2014
In the past few months, we have noted that retailing – among other sectors that make up the Australian economy – slowed dramatically in the June quarter of 2014. The September quarter reports from many companies over AGM season saw a continuation of that trend.
Further to our recent observations, Australia GDP just printed at 0.3 per cent for the September quarter. By contrast, 0.5 per cent for the June quarter 2014, confirms that economic growth is waning in Australia and the RBA might be forced to cut rates further. continue…
by Russell Muldoon Posted in Economics, Energy / Resources, Insightful Insights, Investing Education.
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Looking for value in TPG
Scott Shuttleworth
December 9, 2014
I recently attended TPG Telecom Limited’s Annual General Meeting in Macquarie Park. Below is an ‘over-the-shoulder’ view of my notes which you may find useful. continue…
by Scott Shuttleworth Posted in Insightful Insights, Investing Education, Technology & Telecommunications.
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Who holds the keys to health?
Ben MacNevin
December 8, 2014
Having recently returned from a comprehensive tour of healthcare companies with our friends at UBS, we gleaned a highly important understanding of where the bargaining power lies in the industry. From this tour, it was abundantly clear whose interests matter most.
In essence, every element of the health care sector is dependent upon the doctors – this is across hospitals, health funds, pathology, service providers and medical device distributors. continue…
by Ben MacNevin Posted in Health Care, Insightful Insights, Investing Education.
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Is it true: are we always better off with lower prices?
Roger Montgomery
December 6, 2014
Sadly, we live in a country where the overwhelming belief is that people are almost always better off with lower prices. It’s short-term ideology that fails to recognise the long-term damage suffered by Australian businesses when they simply cannot match the prices offered by better-resourced and more competitive foreign businesses. And it’s ideology again that suggests these businesses should be left to fail.
The result of course is that local businesses do go broke or are bought out by foreign businesses. And as we have seen with Ford and Holden, selling out to foreign enterprises does not secure jobs nor does it guarantee ongoing ‘investment’. We should think of this is we sell off our land, our farms and our infrastructure. continue…
by Roger Montgomery Posted in Consumer discretionary, Insightful Insights, Investing Education.
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Does a lower price mean the shares are cheap?
Russell Muldoon
December 5, 2014
Following on from our recent blog post here and our Head of Research, Tim Kelley’s video blog – on the changing supermarket industry landscape – we are naturally watching the developments in the sector closely (from the sidelines), taking a keen interest in the half year result reported this week by Metcash Limited (ASX:MTS).
To quickly summarise: their half year results showed continued deterioration to which the market has reacted accordingly, with their share price down circa 27 per cent since. continue…
by Russell Muldoon Posted in Companies, Consumer discretionary, Insightful Insights, Investing Education.
