This fund manager thinks the RBA got it right in moderating rate rises

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WaveStone’s Catherine Allfrey says equities are six to 12 months ahead of the economy: “The market will bottom when we know that rates are going to moderate.”

“A lot of multinationals who want to sell things into Australia are like, ‘Well, hang on, we’re putting prices up 8, 10 per cent in Europe, the US, and if you don’t want to accept that price increase, then we’ll just move it to another market’.

WaveStone’s Dynamic Australian equity fund is ahead 1.1 per cent over the year to September 30 in gross performance terms, or negative 0.7 per cent net of fees, bettering the SP/ASX 300 accumulation index’s loss of 8 per cent over the same period. Since inception in 2009, the long-short strategy has earned average annual returns of 12.6 per cent, before fees.Minds investment leaders conference on November 18, which takes place in Hobart, and aims to raise money for medical research.

WaveStone’s long-short strategy has thumped the market with tactical shorts against buy now, pay later technology and consumer discretionary stocks such as Zip, Block and City Chic Collective. , and a position Allfrey is confident can turn around. “We look for quality, growth at a reasonable price, and to be honest, management have delivered in terms of being in a constant upgrade cycle and then they’ve also come through finally with the buyback.”

 

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