Is BT Investment Management suffering from style headwinds?
In this week’s video insight Tim discusses a position The Montgomery Fund recently took in BT Investment Management (ASX:BTT).
The Montgomery Fund and Montgomery Private Fund own shares in BT Investment Management. This video was prepared 17 April 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 BT Investment Management you should seek financial advice.
Tim joined Montgomery in July 2012 and is a senior member of the investment team. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Tim focuses on quant investing and market-neutral strategies.
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.
Jeff Gilbert
:
Tim,
I would have thought if a bear market is near and interest rates are rising, this would a big negative for stocks like BT. You could see them under their IV and be a better by.
Jeff
Tim Kelley
:
That’s a good point, Jeff, and something we wrestled with. Where we came out was that: (1) We don’t know whether the market will enter bear territory or continue to rise, (2) The overall portfolio is nevertheless positioned for a bear market, given cash weighting and mostly conservative portfolio holdings, and (3) to avoid BTT in these circumstances would effectively be “double counting” our concerns around elevated market valuations.