One way of looking for value in the current economic climate is looking at the underlying assets of the business and identifying discrepancies between the cumulative value of the operating units versus the market value of the stock. We tend to have a proportion of the focus list attributed to this way of thinking which we categorise as “hidden value”.
We find this subset of the portfolio can provide great returns that are less correlated to the rest of the market. One such stock that has caught our eye is Tabcorp (TAH).
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David is one of Australia’s leading investment strategists.