How this fund manager beat the market by not owning Nvidia

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Aoris investment chief Stephen Arnold’s international equity fund returned 34 per cent in the 2023 financial year by largely avoiding the Magnificent Seven.

P 500’s rally has been powered by just seven mega-cap tech stocks, Aoris Investment Management’s Stephen Arnold has been steering clear.

“It allows our quality criteria to be unusually demanding and permits us to be discerning on the price we pay,” he says. The one technology stock that made it into the fund is long-term market leader Microsoft. and its application business at very healthy rates over the last five or 10 years, despite the free competition.”

“People found a way to acquire their products, which might have been shopping locally and online rather than shopping when they were travelling.” On investing in the current macroeconomic environment, Arnold reckons that it is time for a refresher in finance 101. of Melbourne-based skincare group Aesop in April shows the value of having a conservative balance sheet.The deal, the largest for any luxury brand in Australia, “wouldn’t have been made available for sale perhaps in lower interest rate conditions” but the CIO says Aseop is an asset that L’Oreal can take to new lengths.

 

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