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The Buy Side Brief collects a range of fund manager views on important investment questions.
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What is a recent change that you have made to your portfolio?

Don Williams, Chief Investment Officer, Platypus Asset Management

We have taken a trading position in Oz Minerals for copper exposure to an improving global economy, as well as participating in the performance improvement in OZL’s assets. We expect a solid improvement in H2 2014, which will form the base for Prominent Hill to grow production by 30% in 2015 to a sustainable 105ktpa. We also like OZL’s development asset, Carapateena, although monetising this is dependent on the right JV partner funding.

David Allingham, Analyst, Eley Griffiths Group

We have reduced our exposure to wealth managers given the significant profit growth and valuation expansion over the last 2 years. We read the high beta correction in early 2014 by the NASDAQ, Biotechs and Russell 2000 as a good lead indicator of more subdued market returns in 2014. At the time stocks such as PTM and HGG needed continued equity market momentum to justify their valuations. Whilst we remain net positive equities, the SP500 is unlikely to deliver another +30% return this year and therefore these stocks are unlikely exceed their recent highs in the short term.

Tim Carleton, Principal, Portfolio Manager, Auscap Asset Management

We have sold our exposure to Fairfax Media (FXJ). The stock has doubled from a year earlier and the valuation, even on a sum of the parts basis, is now looking stretched. Even though the business appears to have turned the corner there are still structural challenges and cyclical advertising expenditure headwinds that need to be carefully managed. 

Jeremy Bendeich, Portfolio Manager, Avoca Investment Management

We have continued to add to our Next DC position. Short positions have been building on the belief that the company needs to raise equity, (we believe EBITDA can cover growth capex in FY15 or that debt funding is available), that the founder Bevan Slattery is looking to sell (He recently increased his position), and or that sales are disappointing, (We believe sales will be sufficient to move the company to EBITDA and cash-flow positive in 1HFY15).
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This is general investment information and does not take into account your objectives, financial situation or needs. Before acting on the information or advice, you should consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs.
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