Active Stock Portfolio Updates - February 2019
Intelligent Investor Equity Growth Portfolio
The market has continued to bounce back after December’s falls, but it’s the handful of hyper-growth stocks that are rallying hardest. They also delivered exceptional operating results during reporting season.
More broadly, reporting season was a mixed bag. Most of the market’s returns this year have come from investors willing to pay more for the same dollar of earnings...
Intelligent Investor Equity Income Portfolio & ASX:INIF
During February we sold mining titan BHP, as its share priced increased. It’s been an excellent investment but it’s benefitting from a high iron ore price, which isn’t likely to last. We also sold Trade Me, as a superior bid for the company seems unlikely.
Shopping centre owner Scentre and Newscorp were sold as they reached fair value. Ovato (formerly PMP Limited) was also sold, as it’s an inferior business that has dragged on performance...
InvestSMART Australian Small Companies Fund
February was another strong month for small companies. Globally-focused, rapidly growing companies, including Webjet, Altium, A2 Milk and Lovisa, were among reporting season’s brightest stars. Results were patchy outside of these names.
We’ve reduced our position in Trade Me as a superior bid for the company seems unlikely. The New Zealand online classifieds business has been replaced by fellow Kiwi and accounting cloud software business Xero, local online job ads business Seek, and local online car classifieds business CarSales...
InvestSMART Hybrid Income Portfolio
For the month of February, the total portfolio return was -0.37% and 1.16% for the three months. Since inception, the total return of the portfolio is 3.93%.
The fall in hybrid prices was largely attributable to the increase in supply with both NAB and Macquarie issuing $1.65bn and $750m hybrid issues respectively...
Frequently Asked Questions about this Article…
The Intelligent Investor Equity Growth Portfolio focuses on high-growth stocks that have shown exceptional operating results, especially during the recent reporting season. It aims to capitalize on the market's recovery and the rally of hyper-growth stocks.
The Intelligent Investor Equity Income Portfolio sold BHP shares in February because the share price had increased significantly, benefiting from a high iron ore price, which is not expected to last.
In February, the InvestSMART Australian Small Companies Fund reduced its position in Trade Me and replaced it with investments in Xero, Seek, and CarSales, focusing on globally-focused, rapidly growing companies.
The InvestSMART Hybrid Income Portfolio experienced a total return of -0.37% in February, but it achieved a 1.16% return over three months and a 3.93% return since inception.
Trade Me was sold from the Intelligent Investor Equity Income Portfolio because a superior bid for the company seemed unlikely, prompting a strategic reallocation of investments.
The fall in hybrid prices in the InvestSMART Hybrid Income Portfolio was largely due to an increase in supply, with significant hybrid issues from NAB and Macquarie.
Webjet, Altium, A2 Milk, and Lovisa were among the top performers in the InvestSMART Australian Small Companies Fund during February, standing out during the reporting season.
Scentre and Newscorp were sold from the Intelligent Investor Equity Income Portfolio because they reached fair value, prompting a strategic decision to sell.
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