ASX 200 shares are in the red on Tuesday with the S&P/ASX 200 Index (ASX: XJO) down 1.47%.
Meantime, two particular shares have captured the attention of Blackwattle Investment Partners portfolio managers Tim Riordan and Michael Teran, who look after the Mid Cap Quality Fund.
The fund is described as "a concentrated yet diversified portfolio of some of the highest and most improving quality companies on the ASX" with a view to holding these stocks over the long term.
Mid-caps are defined as companies with a market capitalisation of $2 billion to $10 billion.
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Which ASX 200 shares did this fund just pour more money into?
In a recent note to clients, Riordan and Teran explained changes to their holdings last month.
This included upping their stake in ASX 200 coal share Whitehaven Coal Ltd (ASX: WHC) and ASX 200 wine stock Treasury Wine Estates Ltd (ASX: TWE).
The portfolio managers said:
We … increased positioning in WHC and TWE given significant catalysts ahead.
We believe the market has not yet understood the underlying quality (improvement) of these businesses nor is it reflected in current stock prices or trading multiples.
What's the latest news on Whitehaven shares?
Whitehaven completed a US$3.2 billion acquisition earlier this month.
The company bought the Daunia and Blackwater metallurgical coal mines from BHP Group Ltd (ASX: BHP) and Mitsubishi Alliance (BMA)
As reported on The Bull, Argonaut analyst Harrison Massey says the acquisition has enhanced the company's sales mix. Thermal and metallurgical coal production are now about evenly split.
In terms of size, the miner now has "minimal competition" with low risk of any big new competitors, he said.
Whitehaven shares are trading for $7.64 per share on Tuesday, down 1.55%.
According to CommSec data, this ASX 200 share is trading on a price-to-earnings (P/E) ratio of 5.6x.
What's the latest news on Treasury Wine shares?
The biggest news has been China's lifting of tariffs on Australian wine imports.
The tariffs had been in place for three-and-a-half years.
The news prompted Treasury Wine to issue a statement.
As my colleague James reported, Treasury Wine announced it will begin partnering with Chinese customers to implement a detailed plan that had been sitting in a drawer awaiting the tariffs' removal.
The plan includes re-establishing the distribution of labels such as Penfolds Max's, Koonunga Hill, One by Penfolds and Rawson's Retreat.
Treasury will also reallocate a portion of Penfolds Bin and Icon bottles from other markets to China.
Treasury Wine's CEO, Tim Ford, described the removal of the tariffs as "a medium-term growth opportunity that we will pursue in a deliberate and sustainable manner …".
Goldman Sachs has a buy rating on the ASX 200 share with a 12-month price target of $13. It also said the tariff removal provided a "positive catalyst" for Treasury Wine.
The broker said:
Our recent channel checks with multiple industry sources suggest there is strong reception by China distributors on the return of Australian Penfolds to the market and some have been "hoarding cash" in order to pay for the Bins and Icons allocations.
Treasury Wine shares are trading for $12.14 per share on Tuesday, down 0.86% for the day so far.
According to CommSec data, this ASX 200 share is trading on a P/E of 23.39x.
