Investor Insights

NEW INVESTORS TAKE NOTE: IT MAY BE TIME TO TAKE YOUR PROFITS

It is important to ask yourself, are you an investor or are you a trader? Typically traders work with far shorter timeframes and are active with their positions. Since the March market rout many share market investors have enjoyed strong gains. There is a genuine risk that lower share prices will decimate inexperienced share speculators, so should you be taking profits off the table now?

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Popular & Featured

July 13, 2020

The coffee can approach

By Lachlan MacKay

The coffee can investment approach is an important concept that illustrates a key factor in how we view prospective businesses. It was coined by famed advisor Robert Kirby, who discovered that one of his clients had been selectively acting on all his buy recommendations, putting away the stock certificates and ignoring any sell recommendations.
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July 2, 2020

Does Megaport have a bright future?

By Tim Kelley

Many readers will be familiar with the transformation being wrought in the information technology space by cloud computing. Where previously an enterprise would own and maintain all of its own computing infrastructure on-premises, increasingly, businesses are coming to view computing as a non-core activity that is best consumed as a service.
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July 1, 2020

Farewell fiscal 2020, hello fiscal 2021

By David Buckland

Twelve months back, who could have predicted the world would be in the state it’s currently in?  And yet, despite the pandemic-induced turmoil, some world markets are not that far from where they were a year ago.   Here’s a quick look at the year that was. The US Nasdaq Index continued to deliver a pull-up effect, appreciating 12.
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June 29, 2020

New investors take note: it may be time to take your profits

By Roger Montgomery

One of the rather surprising trends since the COVID-19 lockdown has been the new wave of first-time share market investors. Many have enjoyed huge gains since the March market rout – often by speculating on highly risky businesses. But the ensuing dislocation between share prices and economic reality tells me that some could get their fingers badly burnt.
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Learn About Investing

In this section we explore investing basics, common themes and information to help guide your investing journey. 

The information provided is general information only. The information does not take into account your investment objectives, financial situation or particular needs. You should consider your own investment objectives, financial situation and particular needs before acting upon any information provided in this document and consider seeking advice from a financial adviser if necessary.
June 26, 2020

Is the LIC market dead?

By Dean Curnow

Listed Investment Companies (LICs) have arguably been the poster child of the Exchanged Traded Product (ETP) movement. As at the end of May, LICs accounted for AUD $45 billion by market capitalisation on the ASX, with 108 offerings across a range of asset classes though mostly concentrated amongst Australian and international shares as captured by Morningstar.
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June 22, 2020

Limits on growth

By George Hadjia

Value investing involves buying something for less than it is worth. In concept this is simple, but in practice it involves the more challenging task of estimating the future growth of cashflows over coming decades. There are certain types of businesses that have characteristics that allow for multiple S-curve growth patterns.
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May 21, 2020

Where models fail

By George Hadjia

At Montaka we consider ourselves value investors. That is, we aim to buy a dollar of value for less than it is worth. Inherent in this approach is estimating the intrinsic value of an investment, and we use financial models to achieve this.
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Latest Insights

July 14, 2020

Liquidity runs dry

By Christopher Demasi

When the stock market sold off dramatically in March this year the US Federal Reserve responded by pumping financial markets with liquidity for the next three months and the stock market rocketed. But the Fed’s role in financial markets has moderated recently and signals that share market investors should proceed with caution.
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July 14, 2020

Our Small Companies Fund shows the benefits of active management

By David Buckland

The Montgomery Small Companies Fund, which was launched in September 2019, recently hit a record high. Since inception to 30 June 2020 The Fund has returned 3. 63 per cent,  which compares very favourably to its benchmark, the S&P/ASX Small Ordinaries Accumulation Index outperforming it by 12. 11 per cent.
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July 13, 2020

The coffee can approach

By Lachlan MacKay

The coffee can investment approach is an important concept that illustrates a key factor in how we view prospective businesses. It was coined by famed advisor Robert Kirby, who discovered that one of his clients had been selectively acting on all his buy recommendations, putting away the stock certificates and ignoring any sell recommendations.
Read Article
Share
July 13, 2020

Why investors have lost their taste for Treasury Wine Estates

By Stuart Jackson

You’d think that Australia’s global winemaker and distributor, Treasury Wine Estates (ASX:TWE), would be reasonably immune to the effects of the COVID-19 pandemic. But the owner of famous brands like Wolf Blass, Lindemans and Penfolds is also feeling the pinch, with its latest trading update pointing to a tough year ahead.
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Media Clips

July 9, 2020

Macquarie Telecom: the data centre business is a real growth engine

By Gary Rollo

  Founded 27 years ago, Macquarie Telecom (ASX:MAQ) is an Australian data centre, cloud, cyber security and telecom company for mid to large business and government customers. Gary recently spoke with Chief Executive Officer, David Tudehope to discuss business and the investments the company’s making to extend its growth horizon.
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June 26, 2020

Small businesses say JobKeeper works, but will its end be a sucker punch?

By Roger Montgomery

Nick Sundich published an article in Stockhead which discusses the assistance Jobkeeper is having on Australian companies.  Eighty-four per cent of small business owners reported the scheme allowed them to stay afloat. Nick comments on Roger’s concern that households and businesses will not be able to start paying their debt once the stimulus packages go away. Read here.
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June 24, 2020

Stocking up is not a sign of optimism

By Roger Montgomery

In this article for the Herald Sun Roger discusses the current market status. Whether the current economic disaster can be repaired through the printing of money remains a multitrillion-dollar question. The same goes for whether it leads to inflation, or possibly hyperinflation after excess productive capacity is soaked up.
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June 24, 2020

Is it about time we stopped paying tax?

By Andrew Macken

In this article for the Herald Sun Andrew questions why we pay taxes. If the Fed can simply buy an infinite amount of government debt, then it must be true that the government can issue an infinite amount of debt. And if this is true, then government spending will be financed by the central bank.
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Our Funds

Concentrated High Conviction Equities

Listed

Montgomery Global Equities Fund (ASX:MOGL)

Global
Available on the ASX as an Exchange Traded Managed Fund, invests in 15 to 30 quality global businesses for long-term capital growth with a target distribution yield of 4.5% per annum. Mirrors the strategy of the Montgomery Global Fund.
Unlisted From $25,000

Montgomery Global Fund

Global
Invests in 15 to 30 quality global businesses for long-term capital growth. Priced daily. Mirrors the strategy of the Montgomery Global Equities Fund (ASX:MOGL).
Unlisted from $25,000

The Montgomery Fund

Australia/NZ
Aims to provide long-term growth and income by investing in 20 to 40 high-quality Australian and New Zealand businesses trading at attractive valuations. Priced daily.
New Fund

Montgomery Small Companies Fund

Australia/NZ
Aims to provide long-term growth by investing in 30 to 50 high quality, undervalued, Australian and NZ small and emerging companies with strong growth potential. Priced daily.
Unlisted from $1 Million

The Montgomery [Private] Fund

Australia/NZ
Seeks to deliver absolute returns from a portfolio of high-quality Australian and New Zealand businesses. Capital preservation is paramount. By invitation only.

Alternate Equity Strategies

Unlisted from $50,000

Montaka Global Access Fund

Global
Aims to generate materially higher risk-adjusted returns, net of fees, than is generally available in the equities market over the medium term. Priced monthly. Provides retail investors access to the Montaka Global Fund.
Unlisted from $1million

Montaka Global 130/30 Fund

Global
Provides the opportunity to benefit from both the gains of extraordinary businesses and the declines of deteriorating businesses through a global equity active extension strategy, which has the potential to significantly outperform the broader equities market over time. Seeks to generate double-digit annual average returns, net of fees. Daily priced.
Unlisted From $1 Million

Montaka Global Fund

Global
Aims to generate materially higher risk-adjusted returns, net of fees, than is generally available in the equities market over the medium term. By invitation only.