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Why Challenger and these ASX shares have crashed lower in 2019

At the weekend I wrote about three shares that have more than doubled in value this year.

Unfortunately, not all shares have fared so well this year. For example, the three shares listed below have fallen materially in 2019. Here’s why they have crashed lower:

The Adelaide Brighton Ltd (ASX: ABC) share price has lost 30% of its value since the start of the year. Investors have been heading to the exits this year due to a sudden deterioration in the building products company’s performance. This is largely due to the softening of conditions in the residential and civil construction markets. Things have been so tough that Adelaide Brighton expects to post a 31.5% to 37% decline in full year underlying net profit after tax (excluding property) in FY 2019.

The Challenger Ltd (ASX: CGF) share price has crashed almost 28% lower this year. The annuities company’s shares have fallen heavily this year due to the release of a disappointing full year result. Weakness in Japan and a decline in domestic annuity sales weighed heavily on its performance and led to Challenger reporting a full year net profit after tax of $307.8 million in FY 2019. This was a 4.6% decline on the prior corresponding period. Trading conditions remain tough for the company, with management warning that profits could fall as much as 9% in FY 2020.

The Platinum Asset Management Ltd (ASX: PTM) share price is down 18% in 2019. Investors have been selling this asset manager’s shares due to the poor performance of its funds and its subsequent fund outflows. In FY 2019 its funds performed so poorly that the company only received $30,000 in performance fees. This compares to almost $22 million a year earlier. Unfortunately, the company continues to report sizeable fund outflows and ETFs are growing in popularity. In light of this, it looks set to be another tough year for Platinum.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.