With the world and share markets in turmoil, all the professional investors are warning that caution needs to be exercised.
Being selective about the ASX shares that you buy is absolutely critical at the moment.
This is why it's fascinating to hear a fund manager actually name some companies that they are backing.
Right now, many of those businesses are ones that have tailwinds unaffected by macroeconomic forces — such as rising interest rates, persistent inflation and supply chain constraints.
Wilson Asset Management portfolio manager Oscar Oberg this week had a couple of ideas:
Earnings upgrade coming
Rural construction equipment and services provider Maas Group Holdings Ltd (ASX: MGH) currently looks hot to Oberg's team.
"It's one of our largest positions in the portfolio," he said at the WAM Vault Live event in Sydney.
"Over 60% of the shares upon issue were owned by the board and the founders, which is always a good sign."
He likes that Maas Group operates in regional Australia, which has been a major beneficiary of the population shift out of big cities like Sydney and Melbourne over the past couple of years.
"We think that alone can drive a 10% to 15% earnings upgrade into the August result," he said.
"It has a very strong balance sheet. It's got a lot of property on the balance sheet."
All this adds up to a bullish view of the Maas share price, despite the skittishness of the market.
"We think the stock can double over the next two or three years."
Maas Group shares have fallen 11.9% for the year so far.
ASX shares trading at less than what assets are worth
Oberg's second nomination, AMP Ltd (ASX: AMP), drew audible gasps from the crowd.
"I was talking to a gentleman outside and I saw his expression when I mentioned it," he said.
"But we like it."
The Wilson team likes that the sale of AMP Capital is now behind it, and what's left behind seems to present decent value, considering its depressed share price.
"If you have a look at the net tangible assets of the business, it's around $1.35 per share — we think that's the worst case."
AMP shares closed Thursday at $1.08.
"It's trading at a 20% discount to its NTA, which is fantastic."
But the biggest positive about the stock is what's coming up for investors.
"Due to the sale of AMP Capital, they're going to return all that money to shareholders, which will equate to about 50% of the current valuation of the company," said Oberg.
"And there's more asset sales to come, so we like that. It's one of our largest [positions]."
