At Pacific Private Asset Management, we aim to provide timely insights from our investment partners. The March update from Copia Investment Partners includes a detailed review of the February reporting season by ECP Asset Management, a video discussion with Mutual Limited on liquid alternatives to private credit, a white paper from HSBC on AI infrastructure, and a webinar invitation from Chester Asset Management.
📊 Reporting Season Insights – ECP Asset Management
The latest reporting season was marked by heightened volatility and significant stock movements. Key themes observed by ECP include:
- Sector Rotation: Last year’s outperformers were sold off following unmet expectations, while under-owned companies with slight improvements saw rallies.
- Volatility Spike: Over 20% of stocks experienced +/-10% price movements on earnings, often disproportionate to actual earnings revisions.
- Short-Termism: Markets showed limited conviction beyond the immediate outlook, presenting opportunities for long-term investors.
- Consumer Resilience: Despite macro pressures, consumer spending held strong, as evidenced by healthy retail comps and improving bank data.
- Sector Highlights:
- Financials: Facing pressure from high valuations and funding costs, though credit quality remains stable.
- Housing: Continued weakness in both volume and pricing, especially in the U.S.
- Technology: Underperformance driven by limited earnings upgrades, but AI remains a widespread strategic theme.
📽 Mutual Limited Video: Liquid Alternatives to Private Credit
In this informative interview, Wayne Buckingham (MD, Mutual Limited) discusses:
- The appeal of Aussie dollar credit as a transparent, liquid alternative to private credit
- Mutual’s preference for contractual income streams and conservative risk management
📄 HSBC White Paper: Powering AI
HSBC Global Infrastructure explores the massive energy demands of AI and data centres:
- Growing electricity needs from Generative AI and LLMs
- U.S. focus: Over 50% of the world’s data centres
- Transition to renewables and what it means for utilities
📅 Chester Asset Management Webinar
Join Rob Tucker (Portfolio Manager) for Chester’s upcoming webinar:
- Date: Wednesday, 30 April @ 11:00 AM (AEST)
- Topics: Quarterly update, equity trends, stock insights
💼 Copia Fund Platform Access & Performance
Copia funds remain available across all major platforms. For the latest performance figures and fund updates, click below:
For more information about any of these updates or how they fit into your investment strategy, please speak with your Pacific Private Asset Management advisor.