A portfolio manager has shed light on reasons to hold selective ASX shares amid the COVID-19 reopening and rising interest rates.
Let’s take a look at why this expert is interested in these shares.
SG Hiscock High Conviction Fund portfolio manager Hamish Tadgell outlined why he favours certain “reopening trades” at this time. Speaking to the Australian Financial Review, Tadgell said:
We continue to favour selective reopening trades and higher cyclical exposure which not only stand to benefit as demand recovers from the pandemic but also as rates tighten.
Outlining his reasons for this outlook on specific shares, Tadgell said:
Aristocrat Leisure and Corporate Travel … have experienced COVID-19 headwinds, but [have] been able to emerge stronger through taking market share and actively participating in industry consolidation.
Aristocrat is an Australian gaming technology company operating in 90 countries with multiple product offerings including pokie machines and casino management systems.
Meantime, Corporate Travel Management is a travel company offering events, leisure, loyalty, and wholesale travel to the corporate sector.
Commenting on two other shares he would hold, Tadgell added:
Cleanaway and Qube Logistics are two other quality companies with market leadership, a strong competitive advantage, assets that [are] hard to replicate and should benefit as borders open and volumes in their respective sectors recover.
Cleanaway is a waste management company providing environmental solutions in Australia and the United Kingdom.
Meanwhile, Qube is a logistics company operating in 130 locations including Australia, New Zealand, Singapore, Malaysia, and Papua New Guinea.
The Aristocrat share price finished 1.65% higher on Tuesday, while Corporate Travel slid 2.48%. Cleanaway closed the session 0.37% in the green today and Qube dropped 1.99%.
Aristocrat shares have gained 6% in the past year, while Corporate Travel Management is 7% higher.
Cleanaway has had a solid past 12 months, climbing nearly 19% although Qube has dropped more than 1% over that time.
For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 3.57% in the past year.
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