Some of our most popular articles here at the Switzer Super Report are our Fundie’s Favourites, in which we ask the professional stock pickers to talk about one of their picks. But how clever are the fund managers really? Let’s take a look back at two picks from last year.
In August of last year chief investment officer at Platypus Asset Management, Don Williams, wrote about CSL [1].
He said that he likes “everything really” about CSL, including its superior management and high growth rate.
“Since it listed in 1994, CSL has grown its earnings per share on a compound basis by 23.3% p.a. (26.2% p.a. in US dollars). The company has managed to successfully expand offshore and become the leading player in plasma-derived therapies globally,” he said then.
And how has it done since then? Take a look at the chart below. It’s up by over 30% in those seven months.
[2]Source: ASX
A few months earlier, in July, Australian equities fund manager Rhett Kessler at Pengana Capital wrote about [3] debt collector Credit Corp and why it’s the gift that keeps on giving.
By then, he’d held the stock within the Pengana portfolio for five years but had held different weightings during that period. He liked management’s ability to develop better systems than its competitors.
“When we originally bought it, it was about $2 on a multiple of just under 10 times earnings. It’s now $8.70 and its earnings multiple is still only just over 10 times earnings. This is in spite of paying large fully-franked dividends and growing its earnings every year in excess of 20%,” he said.
And how has it done since then? It’s up by over 26%.
[4]Source: ASX
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