Nick Dignam from Fortitude Investment Partners shares insights with Lachlan Maddock from Fortitude Investment Partners on how a diversified portfolio in mid-market private equity is structured. The Inside Adviser
The world of alternative investments is at a crossroads. As markets defy expectations and liquidity concerns take centre stage, investors find themselves forced to rethink how they deploy capital in an increasingly complex environment.
Market update; ASX finishes flat
ASX finishes flat, BOQ loan impairments increase, weak overseas lead market to open lower
The ASX 200 (ASX:XJO) ultimately finished flat, after trading as much as 0.8% higher during the session.
Industrials and tech companies offered support, adding 0.7% and 2.4% behind Sydney Airport (ASX:SYD) and Afterpay Ltd (ASX:APT).
SYD reacted positively to news that the Western Australian Government is considering loosening quarantine measures.
The financials sector was the biggest drag, falling 0.4%, after Bank of Queensland Ltd (ASX:BOQ) reported a further $177 million in write-downs on its home loan booked and flagged further underpayment of staff that will cost $10 million; shares finished 7.2% lower.
Telstra Corporation Ltd (ASX:TLS) was flat despite announcing its 5G broadband modem, as it moves to compete directly with the NBN business that has been eating away at its monopoly.
With both NBN Co and TLS now investing in the sector consumers should stand to benefit from more freedom of choice and ultimately better speeds.
Corporate Travel (ASX:CTM) buying again, A2 Milk continues to weaken, Plenti given the all clear
After surviving a highly publicised short selling attack in 2019, Corporate Travel Management Ltd (ASX:CTM) has responded with another major acquisition.
Purchasing the Nebraska-based Travel and Transport booking group for USD$200 million. The purchase will be funded via an AUD$375 million capital raising with focus once again turned to managements ability to integrate and extract efficiencies from the business.
A2 Milk Ltd (ASX:A2M) continued to retreat, down 4.0%, as confidence in their Chinese growth opportunity continues to wane.
Recently listed business lender Plenti Ltd (ASX:PLT) has received the all clear from the Department of Industry, Science, Energy and Resources, after reports that it had received preferential treatment on loans secured by solar panel installations.
Economists remain split on hopes for an October rate cut, with fiscal policy and the upcoming budget likely to offer greater benefit than a move from 0.25% to 0.10% as predicted.
US markets weaker, oil prices fall, retail bankruptcies hit record
Both the S&P 500 and Nasdaq finished lower overnight, down 0.4% and 0.3% respectively.
Around two thirds of companies fell driven by a combination of factors. Investment Bank JPMorgan Chase & Co (NYSE:JPM) was fined $920 million in the US over questionable trading practices on commodity and futures exchanges, some way off Westpac Banks (ASX:WBC) money laundering fine despite the JPM’s size and scale.
Energy prices continue to retreat as reported global COVID-19 deaths surpassed 1 million, traders concerned that a worsening outbreak in the northern hemisphere may further slow any economic recovery.
In a sign of the future, the first half of 2020 saw record US bankruptcies, liquidations and store closures, with retail among the hardest hit.
Eleven major retailers including Sears and Toys ‘R’ Us declared bankruptcy in the first half, that number doubling July and August alone.
Chip makers rose after Micron (NASDAQ:MU) reiterated guidance for quarterly revenue of $5.2 billion, supporting the likes of NVIDIA (NASDAQ:NVDA) and ASML (NASDAQ:ASML).
Stimulus negotiations remain at an impasse, with hope for tomorrow following today’s US presidential election at around 11am AEDST.
