Founder Evidente. Top rated quantitative analyst, Evidente

Sam Ferraro

Founder Evidente. Top rated quantitative analyst

Evidente

Evidente is an independent financial education firm that delivers innovative financial advice to wholesale investors, including active long only funds, hedge funds, pension funds, and sovereign wealth funds, in Australia and globally.  Drawing on academic research in asset pricing, behavioural finance and portfolio construction, Evidente provides wholesale investors with commercial solutions to stock selection and asset allocation decisions across equities and other asset classes.

Equity Bottom-Up

<ul><li>Following a strong start in its first live month, Evidente's model portfolio under-performed in the month of August, falling by -3.0%, well below the ASX200 return of -1.6%.  Since inception on 1 July, the portfolio has generated an accumulated return of +4.2%, lower than the ASX200 return of +4.6%.</li><li>RIO and WES are on close watch due to growing risks of a pull-back in China's residential property markets, while significant restructuring costs and asset impairments at WES reflect poor earnings quality and poor capital allocation decisions by senior management.</li><li>Retail discretionary remains the portfolio's key cyclical overweight bet based on the prospect that there remains plenty of scope for discretionary spending to catch up to food retailing, while household sector balance sheets remain in good shape.  The model portfolio retains a strong  defensive tilt, with overweight bets in telcos, utilities and listed infrastructure stocks being funded by under-weights in financials and materials.</li></ul>

Following a strong start in its first live month, Evidente's model portfolio under-performed in the month of August, falling by -3.0%, well below the ASX200 return of -1.6%.  Since inception on 1 July, the portfolio has generated an accumulated return of +4.2%, lower than the ASX200 return of +4.6%.RIO and WES are on close watch due to growing risks of a pull-back in China's residential property markets, while significant restructuring costs and asset impairments at WES reflect poor earnings quality and poor capital allocation decisions by senior management.Retail discretionary remains the portfolio's key cyclical overweight bet based on the prospect that there remains plenty of scope for discretionary spending to catch up to food retailing, while household sector balance sheets remain in good shape.  The model portfolio retains a strong  defensive tilt, with overweight bets in telcos, utilities and listed infrastructure stocks being funded by under-weights in financials and materials.

Model Portfolio Monthly Update - Retain Strong Defensive Bias

Wesfarmers Ltd

Model Portfolio Monthly Update - Retain Strong Defensive Bias