Investor Insights

WHY IT’S TIME TO FOCUS ON QUALITY BUSINESSES

Is now the time to rebalance portfolios towards the highest quality company names that have been left behind by the rally? A somewhat contrarian view is to consider listed securities that have a stake in high quality assets, those with genuine leverage to a vaccine while also benefitting from lower interest rates. 

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Popular & Featured

July 13, 2020

The coffee can approach

By Lachlan MacKay

The coffee can investment approach is an important concept that illustrates a key factor in how we view prospective businesses. It was coined by famed advisor Robert Kirby, who discovered that one of his clients had been selectively acting on all his buy recommendations, putting away the stock certificates and ignoring any sell recommendations.
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July 2, 2020

Does Megaport have a bright future?

By Tim Kelley

Many readers will be familiar with the transformation being wrought in the information technology space by cloud computing. Where previously an enterprise would own and maintain all of its own computing infrastructure on-premises, increasingly, businesses are coming to view computing as a non-core activity that is best consumed as a service.
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July 1, 2020

Farewell fiscal 2020, hello fiscal 2021

By David Buckland

Twelve months back, who could have predicted the world would be in the state it’s currently in?  And yet, despite the pandemic-induced turmoil, some world markets are not that far from where they were a year ago.   Here’s a quick look at the year that was. The US Nasdaq Index continued to deliver a pull-up effect, appreciating 12.
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June 29, 2020

New investors take note: it may be time to take your profits

By Roger Montgomery

One of the rather surprising trends since the COVID-19 lockdown has been the new wave of first-time share market investors. Many have enjoyed huge gains since the March market rout – often by speculating on highly risky businesses. But the ensuing dislocation between share prices and economic reality tells me that some could get their fingers badly burnt.
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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.
August 5, 2020

Is value investing poised to do well?

By Tim Kelley

One of the most fundamental dichotomies that can be drawn in equity markets is the one that separates “value” from “growth”.  In simple terms, you pick a basic metric – say price to earnings ratio – and you divide the market up into those stocks with a PE ratio above the average (growth stocks) and those with a PE ratio below the average (value stocks).

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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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Latest Insights

August 4, 2020

Uniti Wireless looks set to keep growing

By David Buckland

Since listing on the ASX in January 2019, the share price of broadband provider, Uniti Wireless (ASX:UWL) has enjoyed spectacular growth. From an IPO price of 25 cents, shares have rocketed to $1. 60, with the business growing via consolidation. The upcoming merger with OptiComm Limited (ASX:OPC) will make the business even stronger.
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August 3, 2020

Why it’s time to focus on quality businesses

By Roger Montgomery

In 1976, US economist, Herbert Stein, famously stated that “If something cannot go on forever, it will stop. ” His observation could well be applied to the ballooning value of many technology companies, some of which have never made a profit, and possibly never will.
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July 23, 2020

Montaka's quarterly update (Q2 2020)

By Andrew Macken

The world has changed drastically over recent months and our portfolios have also been updated to reflect the new realities we face today.  With the June quarter now behind us, that rounds out an extraordinarily turbulent 12 month period. In this video update, Andrew shares Montaka’s latest thinking.
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July 21, 2020

Three reasons we continue to like Woolworths

By Joseph Kim

In recent months, The Montgomery Fund has accumulated a significant position in Woolworths – it’s now one our largest positions. And we remain positive on the outlook for the company over the medium term, even after the recent rally in its share price.
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Media Clips

July 9, 2020

Macquarie Telecom: the data centre business is a real growth engine

By Gary Rollo

  Founded 27 years ago, Macquarie Telecom (ASX:MAQ) is an Australian data centre, cloud, cyber security and telecom company for mid to large business and government customers. Gary recently spoke with Chief Executive Officer, David Tudehope to discuss business and the investments the company’s making to extend its growth horizon.
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June 26, 2020

Small businesses say JobKeeper works, but will its end be a sucker punch?

By Roger Montgomery

Nick Sundich published an article in Stockhead which discusses the assistance Jobkeeper is having on Australian companies.  Eighty-four per cent of small business owners reported the scheme allowed them to stay afloat. Nick comments on Roger’s concern that households and businesses will not be able to start paying their debt once the stimulus packages go away. Read here.
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June 24, 2020

Stocking up is not a sign of optimism

By Roger Montgomery

In this article for the Herald Sun Roger discusses the current market status. Whether the current economic disaster can be repaired through the printing of money remains a multitrillion-dollar question. The same goes for whether it leads to inflation, or possibly hyperinflation after excess productive capacity is soaked up.
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June 24, 2020

Is it about time we stopped paying tax?

By Andrew Macken

In this article for the Herald Sun Andrew questions why we pay taxes. If the Fed can simply buy an infinite amount of government debt, then it must be true that the government can issue an infinite amount of debt. And if this is true, then government spending will be financed by the central bank.
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WE DO.

At Montgomery, we’re independent thinkers who look past market noise to focus on the long-term prospects for companies. We don’t follow the herd. Subscribe now to receive our articles, whitepapers and insights.

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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.