Show Notes
The ASX 200 looks expensive, economic growth is subdued, and higher interest rates are putting renewed pressure on valuations. But that doesn’t mean there’s no value left in the Australian market. At Livewire Live, First Sentier Investors’ Dushko Bajic, L1 Capital’s James Hawkins and Ausbil Investment Management’s Arden Jennings were asked where they are still finding opportunities on the ASX. All three are looking beyond the market’s largest companies, but their approaches differ considerably. Bajic is finding opportunities in businesses exposed to major investment cycles, including electrification, AI infrastructure, defence and mining. Hawkins is backing a concentrated portfolio of companies where he sees clear paths to earnings growth, alongside defensive dividend payers. Jennings, meanwhile, sees an opportunity emerging in beaten-up Australian software stocks. They also debate the outlook for interest rates, the impact of higher oil prices, what investors should avoid in the current environment and whether the ASX will be higher or lower 12 months from now. And when asked for their best ideas, they nominate three very different stocks: logistics software company WiseTech Global, electrical contractor Genus Plus and The Lottery Corporation. Time Codes
0:00 – Market backdrop: why the ASX has lagged global markets 1:16 – AI, electrification and defence plays in small caps 4:34 – Three buckets: US earnings, commodities and defensives 6:54 – Index concentration and the case for active management 10:19 – How many more rate hikes, and how to position 16:12 – Reporting season takeaways 18:08 – CSL: when all the news is in the price 19:59 – Second-half skews and results-day volatility 22:00 – Where is the value? Small industrials and resources 24:40 – Why Australian software has lagged the US 28:30 – Capital management: buybacks vs dividends 31:40 – Stock pick: WiseTech 35:10 – Stock pick: Lottery Corporation 38:02 – Stock pick: Genus Plus and the index inclusion trade 40:18 – Audience Q&A: copper and software laggards 43:00 – Where will the ASX be in 12 months?
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