The Australian Financial Review has released its annual survey of the best investment ideas for 2019.
The AFR Weekend’s annual survey collates the best ideas of leading Australian hedge fund managers. One of the journalists who created the list was Jonathan Shapiro, who featured on the Rask Podcast in 2018.
So without further ado, here are some of those picks:
Ben McGarry and Sam Granger of Totus Capital
Ben McGarry has also appeared on the Rask Podcast. The Totus team decided to go for Alphabet, the owner of Google and Waymo, as their investment choice to beat the market this year. They said that it continues to meet earnings expectations and revenue is growing at 20% a year with US$100 billion net cash on its balance sheet.
The Totus team short pick was childcare business G8 Education Ltd (ASX: GEM) because of oversupply concerns. Globally, they feel that Tesla has detached from fundamentals.
James Tayler and Chad Slater of Morphic Asset Management
Chad Slater has also appeared on the Rask Podcast. The Morphic team chose China Everbright, which is listed in Hong Kong. They expect it to benefit from the Chinese government’s environmental policies.
The short Morphic pick is British American Tobacco because bond-like assets could fall due to rising interest rates as well as alternative products like vaping.
Catherine Allfrey and Raaz Bhuyan from WaveStone and Jun Bei Liu from Tribeca
Two different investment firms chose gaming machine business Aristocrat Leisure Limited (ASX: ALL) for its strong growth projections and its p/e ratio of 15 is cheap as a global leader.
Jun Bei Liu’s short choice pick is Seek Limited (ASX: SEK), she thinks it’s trading at a substantial discount with limited growth project including the investments.
Monash Investors
The Monash Investor team decided to go for Nearmap Ltd (ASX: NEA), the aerial surveyor business, for its organic growth, ongoing research, new products and strong balance sheet.
The share that gives the Monash Investors team no fizz at all is Coca-Cola Amatil Ltd (ASX: CCL), which is their short pick. It remains expensive and the Indonesian expansion hasn’t worked according to Sebastian Correia.
Any other ASX ideas for 2019?
History will prove which of the above picks are right. Another two growth shares to consider for 2019 are the ones outlined in the free report below.
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