Barramundi to focus on all-weather portfolio to weather the recession storm

Summary

  • Barramundi Limited gives better-than-expected results in Q2 ending December 2020.
  • Performance due to sound investment strategies as well as a good team.
  • For the future, BRM to focus on an all-weather portfolio, adding companies it feels are undervalued at bargain prices.

Auckland-based Barramundi Limited (NZX:BRM) was trading up by 3.19% at NZ$0.970. An investment company, which focuses on growing Australian companies and offers investors a professionally -managed portfolio service, registered a spectacular performance in Q2 of the current year.

Better-than-expected performance in Q2

In its Q2 announcement, Barramundi said that its performance was better than even the benchmark index. While BRM returned 17.1% to its investors, benchmark index was able to deliver a lower 13.2% returns. For the whole year, the Company returned spectacular 26.3% returns to its investors as compared to 2.7% returns from the stock markets. Even the NAV return was as high as 15.1% for the quarter.

On December 18, BRM also paid a dividend of 1.45 cents per share to its shareholders.

The Company pegs its high performances to its financing philosophy that of investing in high quality and growing companies with smart investment strategies. And also to an excellent team which adapted well to the COVID-19 situations and came out with flying colours, the announcement said. 

Also Read: NZX listed 3 Attractive Small Cap stocks under the lens in 2021- BLT, BFG, BRM

Reasons for Barramundi’s Spectacular performance

The Company gained a lot due to the stock markets’ performance in the last quarter. The markets all over the world showed a spectacular performance on the hopes of an economic recovery in 2021. The ASX200 Index rose 10.2% in November itself.

The US election results, stimulus packages, and COVD-19 vaccination drives around the world, are helping the stock markets go up in the last quarter. 

Having a portfolio of companies that gained the most from the hopes of an economic recovery and were undervalued on the stock markets led BRM to perform well.

Within the BRM’s portfolio, Credit Corp was up 75.3% in Australian Dollars over three months, the banks - ANZ was up 34.2%, NAB up 29.1%, CBA up 29.1%, and Westpac up 16.9%.

Also have a look at: A Glance at 3 NZX stocks’ annual reports- Marlin Global, Barramundi,
Marsden

Plans an all-weather portfolio for 2021

Going forward, with COVID-19 pandemic-related uncertainties still looming large, BRM will focus on an all-weather portfolio so that it is not depending on any economic or pandemic-related situation, and investors continue to get good returns. The Company plans to have a portfolio of high quality as well as growing businesses.

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