Advisor reveals the 3 most popular ASX shares among his clients

Ask A Fund Manager: Medallion Financial’s Michael Wayne picks the investments that have served him well for many years and still look good
The post Advisor reveals the 3 most popular ASX shares among his clients appeared first on The Motley Fool Australia. –

Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Medallion Financial managing director Michael Wayne shows off the 3 ASX shares that have gone gangbusters for him over many years.

Investment style

The Motley Fool: How would you describe your service to a potential client?

Michael Wayne: We’re a private wealth advisory firm. We help clients invest in the Australian equity market through direct shares. That’s where we think we can add some good value to people. We also help clients gain exposure to the international markets through ETFs [exchange-traded funds] and ETMFs [exchange-traded managed funds] and various listed investment companies. 

We are actually in the process of setting up a fund that will launch in January of 2022, fresh for the new year.

MF: Congratulations.

MW: It won’t be a big part of our business to start with, but it will allow investors who want to come on board with Medallion and invest in the Medallion strategy. It will allow smaller investors with smaller increments to just put money into a fund, rather than setting up a trading account and rolling across an entire portfolio. 

That fund will just follow the strategy of Medallion’s model portfolio, effectively, look to replicate the approach and the companies that are held within that model portfolio.

The managed funds will be S&P/ASX 300 (ASX: XKO) direct shares with a skew, I suppose, to ASX ex-50, looking to identify some of those emerging leaders. So still businesses that are of size and established, but are still growing at a very quick rate. 

In saying that, many of the businesses in the model portfolio and many of the businesses that we’ll hold in the fund are still within the S&P/ASX 50 (ASX: XFL). So companies like Aristocrat Leisure Limited (ASX: ALL), CSL Limited (ASX: CSL), Fisher & Paykel Healthcare Corp Ltd (ASX: FPH), Resmed CDI (ASX: RMD), these types of businesses. Businesses we hold now for clients, and will likely be replicated in the fund going forward.

Popular ASX shares

MF: What are the most popular holdings currently among your clients?

MW: CSL is the biggest holding across our client book, and then close second and third is Fisher & Paykel and Resmed. 

That’s not necessarily done by design, but it’s a symptom of the fact that they’ve been stellar performers over 3, 4 years, even longer, going back in time. They’ve grown to be fairly significant size weightings in portfolios and we’re comfortable in holding these companies long term. 

They’ve got very, very strong balance sheets. They’re growing at double digit revenue growth and earnings growth. Margins are very, very strong. So they’re core positions that we’re comfortable in holding.

MF: Coincidentally all 3 are in health?

MW: Yeah. In terms of our strategy and the way that we approach the market, we do try to identify sectors of the economy that we think are booming and have a bright outlook. Healthcare, with the ageing population and emerging middle classes in places like Asia, we think that there’s a natural long-term tailwind for that sector. 

Then once we identify a sector that we like, we try to identify the companies within those sectors that have very strong fundamentals. So, companies with consistent revenue growth, margin expansion, high return on equity, low debt — these sorts of traits and characteristics. That’s how we filter through the market and identify the companies that we want to hold.

The post Advisor reveals the 3 most popular ASX shares among his clients appeared first on The Motley Fool Australia.

Should you invest $1,000 in Fisher & Paykel Healthcare right now?

Before you consider Fisher & Paykel Healthcare, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Fisher & Paykel Healthcare wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

These are the ASX 200 shares that fundies have been snapping up

2 ASX shares looking good in turbulent times

Leading brokers name 3 ASX shares to buy today

The CSL (ASX:CSL) share price reached a new 52-week high last week. What’s next?

Why a leading broker is bullish on these 3 ASX shares

Motley Fool contributor Tony Yoo owns shares of CSL Ltd. and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!