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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April 8, 2020

Part I: How reliable is Total Addressable Market (TAM) analysis?

By Amit Nath

A helpful mental model that we often incorporate into our research process at Montaka Global is Total Addressable Market (TAM) analysis. Through this process, we attempt to estimate how large the revenue opportunity is for a particular business. However, the picture isn’t quite as linear as it sounds. For example, take the advertising industry as it currently stands.
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March 5, 2020

The importance of a Competitive Advantage Period

By Daniel Wu

Competitive Advantage Period is a key investment concept that is often overlooked by investors. An understanding of this concept can help investors better determine what they’re paying for when they buy a stock. Under the expectations investing framework which the Montaka team utilises extensively, one key component that attracts less consideration is the Competitive Advantage Period (CAP).
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February 26, 2020

Are you overweight in growth stocks?

By Tim Kelley

In an uncertain world, should investors have a strategy that looks beyond current trends and accommodates a range of different possible futures? In recent years growth stocks have had a winning streak, is now a good time to consider shifting the balance of your holdings towards companies that can demonstrate the ability to generate profits today.
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February 19, 2020
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Is it time to rebalance your retirement portfolio?

By Roger Montgomery

In the current environment of ultra-low interest rates, generating enough income for retirement can be challenging. Instead of being able to add to their nest egg, many retirees find themselves needing to withdraw capital to make up a shortfall between their lifestyle requirements and their income.
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February 13, 2020

Are quality businesses set to shine again?

By Tim Kelley

Some years ago, we put together a notional “High-minus-low quality” portfolio, which holds long positions in ASX-listed companies that we consider to be high-quality, and short positions in companies that we consider to be lower-quality. The absolute return from this portfolio provides an indication of whether the higher quality companies are outperforming the lower-quality companies.
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February 3, 2020

What’s behind the weak performance of quantitative investing?

By Tim Kelley

Equity markets have been very kind to investors in recent years, with stock indices setting new records in Australia and overseas. Notwithstanding some episodes of turbulence along the way, these good results continue a decade-long run of mainly positive returns following the depths of the GFC in early 2009.
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January 31, 2020

Does valuation not matter for high quality businesses?

By George Hadjia

One characteristic of a high-quality business is its ability to grow its intrinsic value over time. So does that mean that it’s possible to overpay for a high quality business and then wait for it to “grow into its valuation”? This depends on a number of things which we will attempt to tease out.
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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.