In episode 30 of Stocks Neat, Portfolio Manager Harvey Migotti and CIO Steve Johnson discuss recent portfolio performance including which surprise sectors have started contributing in 2024. They cover a wide range of topics including AI related companies, China worries, and overlooked opportunities in sectors such as European financials. The conversation then moves to portfolio management and how changing market perceptions of companies can influence how to know when to let your winners run and when to bank profits. Listen to the full episode to find out more. “I don’t want AI to come and do ..read more

During the March quarter, the Forager International Shares Fund invested in Fiserv (NYSE:FI). Fiserv is a global payments company offering an array of transaction processing solutions to various clients, from big global banks to your local coffee shop. It owns the third-largest debit network in the world, trailing only Visa (NYSE:V) and Mastercard (NYSE:MA). It also owns and operates Clover, a digital Point of Sale (POS) and payments system for small and medium businesses. Clover is a key part of the thesis, having grown from nothing to more than US$270 billion ..read more

In episode 29 of Stocks Neat Co-Portfolio Manager Gareth Brown and CIO Steve Johnson discuss several investing maxims, and how these might apply to portfolio positioning in prior and current markets. Topics covered include cleaning portfolios to include only high conviction ideas, selling when you can, maintaining cash in the portfolio, how to deploy cash in a downturn, and identifying diversity breakdowns that result from cross-sector correlations. Additionally, Gareth and Steve analyse some recent portfolio changes and the driving factors behind these shifts, before responding to a couple ..read more

Assuming the Australian Fund does get delisted, it will be the last element of a two-year project to simplify the Forager business. By July 2024, we could be back to two simple open-ended funds with the same Responsible Entity and registry, both accepting daily applications and redemptions. We are often critical of listed company managers for not focusing on their core strategy. I run a business with just 10 employees and I can inform you that it is easier said than done. It is very easy to add new ideas, products and technologies to your business. They all come with logic and rationale that ..read more

The 2024 year began the way 2023 ended. Globally, the MSCI World IMI Index (in AUD) rose 12.7% in the first quarter of the year while the ASX All Ordinaries Accumulation Index (including dividends) rose 5.5% over the same period. The composition of the rally changed meaningfully, though, with the Magnificent Seven becoming a magnificent five (Apple and Tesla both experienced share price declines over the quarter) and a significantly higher percentage of the market participating in the rally. More than half of the S&P 500 constituents traded at 52-week highs during the quarter. Plenty of ..read more

In episode 28 of Stocks Neat Co-Portfolio Manager Gareth Brown and CIO Steve Johnson discuss the prospect of price gouging in major Australian industries, the role future Competition Policy has to play, and the potential implications for investors. The topic of competition problems in Australia has garnered increased publicity in recent times, driven by concerns over long-term productivity issues and the more immediate price impact Australian households are experiencing. In this episode, Gareth and Steve discuss local oligopolies in the supermarket, airline and toll spaces, and what future C ..read more

This article was originally produced for Livewire Markets   In Homer’s epic poem The Odyssey, beautiful Sirens attempt to lure sailors off course by hypnotising them with their song and causing them to crash into rocks and land. Is the allure of cash currently having a similar effect on investors?  With some banks now offering north of 5% on savings, cash and cash products have re-entered the thoughts of investors, after being absent for so many years of ultra-low interest rates. That’s good news for investors. It’s also good news for markets. The “hunt for yield” when interest rat ..read more

In episode 27 of Stocks Neat Co-Portfolio Manager Gareth Brown and CIO Steve Johnson discuss the recent performance of small caps and the psychology of investing. Understanding the psychology of ourselves and others can go a long way to helping us navigate through life. Markets and investing is no different. Understanding this can enable us to avoid biases and regulate emotions to make rational and effective investment decisions. In the episode, Gareth and Steve discuss the works of Kahneman and Tversky, and how their own personal experiences of investing have been changed and shaped over ti ..read more

In Forager’s December 2023 CIO letter, Steve Johnson talked about increasing volatility and reduced focus on intrinsic value: “I don’t think any rational person is changing their valuation of the market by 20% based on one month of inflation data. Rather, financial markets are being dominated (more than ever, in my opinion) by money that doesn’t care what stocks are worth, only where they are going to trade in the short term. The computer says rates up equals sell. The computer says rates down equals buy.” It’s a tale evident in both markets and individual stocks. Global online gambling gi ..read more

In late 2017, there weren’t many buyers of Blancco Technology Group. The CEO had just been fired, the company had overstated its revenue figures, its financial reports were delayed, and the share price had fallen over 80% in a matter of months. It’s understandable why most investors were running for the exits. The International Share Fund team at Forager, however, were willing to take a look.  Forager’s investment in Blancco was ultimately one of the Fund’s most successful in its 11-year history, ending with a tense fight for the company’s future where it was eventually taken private. S ..read more