Update from the CIO

Welcome to the CIO blog

Yesterday we reported an NTA of $2.98 to the market.

Earnings season in the US, as usual, caused large moves in company share prices, both up and down. Indeed, with the domestic reporting season also underway, we can expect more surprises.

Yesterday, one of our conference recommendations, JB HiFi, reported, and pleasingly for us, as shareholders, exceeded analysts expectations. Given how heavily shorted this stock has been, the 10% rally was not unexpected.

Our portfolio has not been immune to negative surprises though, especially in a couple of our offshore holdings, and even the best stocks will disappoint when high expectations are baked into a share price ahead of a company update. As investors, we must always remember this, and not panic when good companies have temporary price setbacks.