Pengana is a $600 million fund run by portfolio managers Steve Black and Ed Pendergast that has just clocked up ten years of operating performance and a track record which can boast of a 14% per annum return after fees.
This market-beating performance is at least partially attributed to Black and Pendergast's energetic company visitation program – a necessity they believe in given many of the stocks they seek out are not well covered by broking analysts.
A recent article in the Australian Financial Review (AFR) gave investors an opportunity to read about some of the fund's recent portfolio moves.
The portfolio managers noted that one of their top performers recently has been medical device company ResMed Inc. (CHESS) (ASX: RMD), which has benefited the fund thanks to its exposure to the US dollar. The stock has gained 14.3% in the past three months which roughly mirrors the decline in the Australian dollar.
2 stocks Pengana is buying
Veda Group Ltd (ASX: VED) is a leading data analytics company that provides credit information. Most analysts appear bullish on the company's growth prospects, a view which is reflected in the high multiple the stock trades on. A recent pullback in share price has obviously tempted Pengana.
Freight and logistics group Qube Holdings Ltd (ASX: QUB) is another stock that has piqued Pengana's interest. Interestingly it was also my top stock pick for November. Qube offers investors exposure to an appealing portfolio of key assets such as port infrastructure, which provides reliable and defensive earnings.
2 stocks Pengana is selling
Black and Pendergast also noted that the fund had recently sold down positions in DuluxGroup Limited (ASX: DLX) and Fletcher Building Limited (Australia) (ASX: FBU), which perhaps suggests that they believe investing in the home building theme has run its course.
The market would at least appear to think this is the case with share price returns from DuluxGroup and Fletcher Building over the past year being just 4.7% and -11.4% respectively.
