• Marcus Bogdan

Portfolio Changes - Increasing CSL | Reducing Endeavour Group (EDV)

Updated: 5 days ago

Increasing CSL Limited (CSL) & - Concentrated Fund

Since the onset of the pandemic in March 2020 CSL’s share price has fallen ~18% compared to a ~5% rise for the ASX 200 index. Notably, CSL’s share price has been weighted down by concerns about the impact the pandemic has had on plasma collection levels and more recently the Vifor Pharma acquisition (partially funded by an institutional placement of US$4.5bn). With plasma collections returning to near pre-pandemic levels, we expect that 2H22 should represent the trough of CSL’s earnings contraction cycle. We have added to our position in CSL on the expectation of a recovery in earnings and valuation support with the company trading on a PE of ~25 times (12- month forward earnings), compared to its long- term average of ~31 times.


Reduce Endeavour (EDV) - Blended & Concentrated Funds


We have reduced our weighting in Endeavour (EDV) following a strong recovery in its share price, whereby its return has been ~26% over the past rolling quarter versus ~9% for the ASX200 . In EDV’s most recent trading update (3Q22) group revenue was down 2% from a year earlier. Lower in-store Retail sales (down 3%) were partially offset by higher Hotel sales (up 3.8%) as the easing of COVID-19 restrictions supported a return to consumers to on-premise consumption. With EDV recent share price rally and trading on a PE of ~26 times (12-month forward earnings) we have reduced our holding.