One key function of long/short fund managers is to compare similar companies and trade them against each other. These companies are often found within sectors but can also be found across sectors, as companies with similar characteristics. Once identified, a long/short manager will buy the stronger-performing company in the pair and sell the weaker-performing company. This is known as a 'pairs' trade. This strategy also has the benefit of being market-neutral (given one long and one short...

Lithium darling Pilbara Minerals has overtaken Flight Centre as the most-shorted stock on the ASX. After what seems like years at the top of the list, the travel company has dropped down to the 30th most-shorted stock on the ASX - with a short interest of 5.75%.  Today, only two of the 10 most-shorted stocks are not miners - while out of the top 20, only seven stocks are not within the minerals and resources sectors. It's fair to say then that the market remains bearish on the outlook for...

Locally, founder-led businesses have been making headlines for all the wrong reasons. Take the downfall of Australian tech billionaire Richard White of WiseTech Global, for example, or the tax scandal claims circling Mineral Resources' Chris Ellison.  On the global stage, founders can be far more divisive. Elon Musk is now being sued by Philadelphia's district attorney over his US$1 million daily election giveaways in a bid to boost Donald Trump's election campaign. In response, he posted a...

We are only a week away from the US election - and it's arguably still anyone's guess who could win.  Currently, betting markets have former US President Donald Trump at a 59% chance of winning a second term next week. That's despite Democrat nominee Kamala Harris leading in some of these same betting polls just one month ago.  So, what would a Trump second term mean for markets? Or if Kamala pulls off the win, how should investors position their portfolios?  In this episode, Livewire's Ally...

With the US Federal Reserve cutting its cash rate by 50 basis points in September, Fitch Ratings predicts that the upper US federal funds target will fall to 4.5% by the end of the year, 3.5% by the end of 2025, and 3.0% by June 2026.   Meanwhile, JP Morgan expects the Fed will cut by another 50 basis points in November. Looking out over the next few years, JP Morgan notes the Fed’s “dot plot” has four more 25 bp cuts (totalling 100 bp) in 2025. It also notes that the Fed has increased...

Founder-led companies typically outperform their peers over the long term. Driven by a strong alignment of interest, a founder's long-term focus, and emotional dedication to a business's success, companies with founders at the helm are seen to be a safer bet than those with hired suits.  Take Milford Asset Management, for example, which found the three-year performance of the founder-led stocks within their portfolio (23 companies) returned 24.9% per annum against the Small Ordinaries 2.7% to...

With decades of experience under their belts, it's fair to say that Ellerston's Chris Kourtis and Airlie's Matt Williams know a thing or two about investing. While their styles differ quite widely - Chris is a contrarian and Matt's all about quality and solid balance sheets - they both have their eyes keenly focused on their next opportunity.  Interestingly, despite the different investment styles - valuation is one thing they can agree on - and make it clear that investors should take a...

Each year, a fund manager is added to the Hall of Fame. It's an illustrious list, including only the best of the best Australian funds management talent - the likes of Olev Rahn, Kerr Neilson, Peter Morgan, Anton Tagliaferro, Catherine Allfrey and more.  Given another name will be added to the list later this month, we've called on the big guns - Hall of Fame alumni Chris Kourtis from Ellerston Capital and Matt Williams from Airlie Funds Management, who were inducted into the Hall of Fame in...

Each year, a fund manager is added to the Hall of Fame. It's an illustrious list, including only the best of the best Australian funds management talent - the likes of Olev Rahn, Kerr Neilson, Peter Morgan, Anton Tagliaferro, Catherine Allfrey and more.  Given another name will be added to the list later this month, we've called on the big guns - Hall of Fame alumni Chris Kourtis from Ellerston Capital and Matt Williams from Airlie Funds Management, who were inducted into the Hall of Fame in...

For years, experts have predicted a coming surge for copper. BHP, for instance, believes that copper demand will grow by around 70% to over 50 million tonnes (Mt) a year by 2050. For context, the total copper demand in 2023 was 31 million tonnes.  But copper prices haven't really gone anywhere over the last three years - sitting at around the mid-US$4 level since November 2021.  According to today's guests, slowing global economies has had a dampening effect on demand and kept copper prices...

Uranium prices have cascaded 23% since hitting a high early in the year, now trading at around US$81/lb. However, Argonaut's David Franklyn believes this is a "pretty good long-term price" - arguing that while demand growth will be substantial, supply will eventually kick in.  Despite that, some of the ASX's uranium darlings have still had a pretty impressive 12 months, with Paladin Energy and Deep Yellow, for instance, up 16% and 27% respectively year to date. That said, other plays, like...

Gold prices are trading at all-time highs, with the yellow metal soaring more than 38% over the last 12 months alone. The "safe haven" commodity's price has been driven by continued economic uncertainty, rising geopolitical tensions, a weakening US dollar, and net purchases of gold by global central banks - particularly emerging market central banks in Asia.  But can gold prices continue even higher from here? And if so, which ASX-listed players are likely to benefit?  To find out, Livewire...

Investors love a dividend. Not only do they help provide investors with passive income during even the rockiest periods in markets, but they also make up a significant portion of Australian investors' total return over the long term.  While the current outlook for dividends for the Aussie market may not be super hot, some stocks are boosting their dividend payouts over the next 24 months.  So in this episode, Livewire's Ally Selby was joined by Ausbil Investment Management's Michael Price and...

Let’s face it: We’re all capable of being mesmerised by headlines. Whether it's a cracking headline on Livewire or an attractive headline price at the shops ($199 is always more appealing than $200), we’re often reluctant to read the fine print or understand what’s going on beneath the surface. But that reluctance can get you into trouble, particularly when it comes to income investing. There is a point at which a headline yield starts to look more like a pitfall than a probability and there...

While the August reporting season was mixed itself, the dividend outlook isn't so rosy.  Companies are hoarding their cash, with the payout ratio of the Australian market falling from 62% pre-COVID to 53% today, according to Martin Currie.  The dividend yield for the Australian stock market has also fallen in recent years, with the All Ords now yielding 3.70% compared to the historical average of 4.07%.   So, should investors still hold companies that have announced they will be cutting their...

If you feel like your portfolio has taken a hit over the last month, spare a moment of silence for shareholders in stocks like Johns Lyng Group, Audinate, Tabcorp, Megaport, A2 Milk, Kelsian, Mineral Resources, EML Payments, Yancoal, Star Entertainment, Cettire, Liontown, Neuren Pharmaceuticals, Red Hill Minerals, and Boss Energy.  All in all, 117 companies in the All Ords shed more than 10% during the month, 29 saw their share prices fall more than 20%, and eight tumbled more than 30%. For...

Just like the leaders and losers of the ASX 200 in 2024, the August reporting season has been a tale of two halves.  According to FNArena's corporate results monitor, 36% of companies have missed analyst expectations this results season, while 30.4% have delivered beats. 33.7% of companies delivered results that were in line with analyst expectations. Unsurprisingly, there have been more downgrades than upgrades over the past month.  So, to help you digest the good, bad and (let's face it,...

We've seen some real whiplash market moves this reporting season. Take Megaport, for instance, which fell 21% in one trading day. Or Audinate, which fell 36% on its preliminary results. Or, on the other side of that, WiseTech, which soared more than 18% on its stellar report. But what about the stocks that didn't move, or hardly moved at all - despite releasing solid results this reporting season? In this episode of Buy Hold Sell, Centennial Asset Management's Matthew Kidman was joined by...

Cash flow is a great measure that allows investors to get a good look at how well a company is balancing its earnings against its expenses. Companies with positive and growing cash flows can hire talented people, invest in innovation, make acquisitions, buy back shares and pay dividends. And there are a few companies on the ASX that are currently spewing out a LOT of cash. So, in this episode, Livewire's Ally Selby was joined by Perpetual's Nathan Hughes and Hayborough's Ben Rundle for their...

Management teams can make or break a business. Good management teams focus on a company's long-term success, are aligned with shareholders, and are usually good stewards of capital.  Bad management teams, however, may make "transformational acquisitions" that aren't in the best interest of a business, take on too much debt, dilute shareholders, and are more focused on the short term.  Management teams - whether they be founders or hired suits - are particularly important to the success of...

Like most things in life, stock sell-offs come down to simple supply and demand. If there are more sellers than buyers, a company's share price will fall. But in today's market, nearly 30 companies now trade at 52-week lows and many others have suffered double-digit losses over the last 12 months. So, are these oversold companies value traps or investable opportunities? To find out, Livewire's Ally Selby was joined by Perpetual's Nathan Hughes and Hayborough Investment Partners' Ben...

Growth stocks had been on a tear in 2024, with investors betting big on rate cuts at the end of the year and throughout 2025. The last month, however, has been a slightly different story.  The NASDAQ 100 has dropped more than 13% since hitting a peak on July 10. And while our local tech tracker, the S&P All Tech Index (XTX) held up relatively well throughout July, the index crashed 8% in the first week of August.  While the last week has been painful for many investors, growth stocks are...

It's no secret that the ASX is incredibly concentrated. 50% of the ASX 200 is made up of banks and miners. In the top 10 stocks on the ASX alone, only three (CSL, Wesfarmers and Goodman Group) don't fit within the financial or materials sectors. The S&P/ASX 200 Financials index has risen 23.99% over the last 12 months, while the Banks index has pushed 27.82% higher. All the indices that track materials and miners, on the other hand, are in the red - except for the index tracking gold...

It's not shaping up to be an easy reporting season, with weakening consumer sentiment and business conditions, as well as a softening labour market, taking a toll on Australia's listed companies.  That said, while analysts believe earnings will disappoint this August results season, with Goldman Sachs and Macquarie predicting a 3.8% and 6% drop respectively, they dangle the carrot for investors - arguing that earnings will rebound over the year ahead.  So which stocks could surprise...