Platinum Capital Has Released Not So Attractive Quarterly Investment Manager's Report

  • Oct 18, 2018 AEDT
  • Team Kalkine
Platinum Capital Has Released Not So Attractive Quarterly Investment Manager's Report

Platinum Capital (ASX: PMC) has released the quarterly investment manager's report which showed that the company, by quite some margin, underperformed the market. Over the last quarter PMC's portfolio returned a loss of -0.6% and 7.3% for the past year. With global markets up 19.0% and 6.5% these returns lagged significantly behind broad market returns, over these respective periods.

How concerns around a potential slowdown in China have led to greater risk aversion among investors, exacerbated by a trade war with the US and rising US interest rates are highlighted in the Macro Overview this quarter. This means avoiding companies that face any degree of uncertainty, especially those that are seen as being potentially impacted by these issues. Instead, high growth companies that are considered relatively immune from these external factors are preferred.

Over the last six months, from high growth sectors such as internet, software and biotech, the result has been very strong stock price performance, while companies perceived to be more cyclical have lagged or been sold down. The only exception was of the energy sector where strong stock price performance has been driven by rising oil prices. 

The trends observed over the last quarter, have been clearly demonstrated by those that detracted from and, the stocks that contributed to, PMC’s performance. Alphabet (+7%) and Schibsted (+23%), a Norwegian company were among the strongest contributors with strong positions in online classifieds in a number of markets. Glencore (-6%) and Sumitomo Metal Mining (-6%) were major detractors from performance included the metal stock.

In the areas that have performed poorly over the last 6 to 12 months, PMC’s lagging performance is largely the result of a far greater weighting. Notably with exposure to copper and nickel PMC’s portfolio has a number of investments in mining companies. At the end of the June quarter from 11%, PMC’s cash position was raised to 13% as of the end of September. Over the quarter, short positions were reduced slightly.

At close to 72%, the overall net invested position of the portfolio remains roughly unchanged. On face value, the portfolio’s net invested position is now at one of its lowest level since 2009, very conservatively positioned.

Compared with a 6.5 per cent gain for the MSCI AC World Index, the company's portfolio fell 0.6 per cent during the last quarter. Over the past year, three years and five years as well, in fact, the portfolio has underperformed the MSCI AC World Index.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK