The Airlie Funds Management portfolio manager owned Mineral Resources when it was trading at $12 and pitched it at Sohn Hearts & Minds conference in 2019 , owned Reece when the stock was just under $10 , and held Wesfarmers when the shares fell to $49 .More recently she built a stake in ResMed in the midst of the stock’s collapse last year, and piled into retailers Premier Investments and Nick Scali “hand over fist” in June.
Fisher attributes the fund’s best performance to investing in founder-led businesses like MinRes, Premier, Nick Scali, and Reece, where she says the meetings and management “stood out”. It’s helped the Airlie Australian Share fund outperform the benchmark ASX 200 Accumulation Index since its launch in 2018 by low single digits, a performance that Fisher describes as “the sensible middle” of fund management.
And Fisher has made some mistakes. Among the more painful was backing Orora when it acquired French bottle manufacturer Saverglass from the Carlyle Group for $2.2 billion last year. Over that time, the shares have lost around a third of their value at $2.23 apiece, which Fisher says has been a real lesson in the principle of Occam’s razor – where if you have two competing explanations for the same idea, the simpler one is usually right.
Other market calls could be forgiven, such as cutting her holding in Commonwealth Bank this year only for the shares to keep grinding higher.It’s a move that Fisher concedes has been “too early”, but her reasoning is fair enough – the shares are just too expensive, and the valuation doesn’t reflect the outlook for the bank or the sector.
Fisher’s built up the fund’s position even as the shares have continued to fall – “it’s gone from $19 to $16.50 in the time that we have been buying it”.Year-to-date, the stock is down 18 per cent and Fisher says it will probably fall further at least in the near term. Even so, the portfolio manager is adamant that the company can survive the regulatory hit.
“You can kind of lean into that fear that the cycle is throwing off, and find a good business that we think is cheaper than it’s worth,” she says.Fisher, whose first job was a “check out chick” at Woolworths, has her eyes on the sector that has been slammed by a Senate inquiry and seenWhile she can’t confirm if she’s actually started buying the stocks for compliance reasons, there’s a good chance that she has or is at least close.
Source: News Formal (newsformal.com)
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