The share market bloodbath that was October did not spare even quality businesses with positive outlooks.
But you know what? QVG analysts think that merely presents an excellent buying opportunity.
"The market has had a rational — and painful — revaluation downwards," they said in a memo to clients.
"Lower valuations imply higher future returns. We're looking forward to [interest] rates levelling out."
Let's check out two of those now-cheap ASX shares that QVG is banking on:
Billions of dollars still coming in
Hub24 Ltd (ASX: HUB) shares plummeted 7% last month, although it has recovered somewhat in the first days of November.
The QVG team has faith because the investment platform's performance still held up notwithstanding the declining share price.
"In the case of Hub24, we were pleased to see $2.8 billion in fund inflows despite weak market conditions."
Believe it or not, excellent numbers from its rival were also a boost.
"Particularly encouraging was the outperformance of their most respected competitor Netwealth Group Ltd (ASX: NWL), who achieved $2.1 billion of inflows."
Hub24 remains the QVG Capital Long Short Fund's third largest holding.
The other ace up Hub24's sleeve is that interest rate rises might be coming to an end.
Any subsequent decrease in bond yields would provide a nice stimulus for share markets, and for investment platforms.
ASX shares with great expectations
If not for a furious rally in the final days of October, Mader Group Ltd (ASX: MAD) would have ended up 12.9% down for the month.
The maintenance services provider ended up 1.25% lower for October, but that came on the back of a massive 15.2% sell-off in September.
QVG analysts are not worried, with a business update giving them confidence about the long-term direction.
"Their September quarter showed 37% revenue growth, with their less mature North American business doing the heavy lifting."
With the stock price almost doubling in 2023, the analysts admit Mader Group has a lot to live up to.
"Expectations are high but we believe the margin outlook supports consensus forecasts."
The stock seems to be a popular buy-the-dip pick, with four out of five analysts surveyed on CMC Markets currently rating it as an add.