• Just 12 months ago, this company was trading at $2.95. Today its shares are almost five times higher. Find out who: read here

Whitepaper: How to profit from market myths

SUBSCRIBE FOR FREE TO UNLOCK THIS WHITEPAPER

In this whitepaper you will discover:

  • How we question the conventional wisdom of the safety of consumer staples
  • The five myths facing packaged goods businesses
  • Insight on how our Montaka strategy has generated profits for investors
SUBSCRIBE FOR FREE TO UNLOCK THIS WHITEPAPER

In this whitepaper you will discover:

  • How we question the conventional wisdom of the safety of consumer staples
  • The five myths facing packaged goods businesses
  • Insight on how our Montaka strategy has generated profits for investors

Whitepaper: How to profit from market myths

All too often, investors rely on conventional wisdom – ideas that were once true, but no longer hold. Great investment opportunities can come from questioning these ideas.

Take consumer packaged goods businesses who produce everyday goods, like Kraft Heinz, Edgewell and Kellogg. The long-held view has been that these businesses are highly defensive, and that investing in them is recession-proof. But is it really?

We think many of these businesses are facing a raft of challenges. These include the advance of private label brands, and a limited ability to boost margins.

In short, for some time, we have been convinced that the defensive qualities of these businesses have declined, and that their share prices are too high.

This whitepaper analyses the risks facing packaged goods businesses, and shows how our Montaka global equity long-short fund has been able to profit by taking short positions in a number of these businesses.

Unlock to Read More Use the form on this page to access this exclusive content.

Andrew Macken is a Portfolio Manager at Montgomery Global Investment Management. Andrew joined Montgomery in March 2014 after spending four years as a Research Analyst under Jim Chanos at Kynikos Associates in New York.

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.

INVEST WITH MONTGOMERY