Global equity managers selects his top local stock

By John Kavanagh
Source: The Rub

Asked to nominate his favourite Australian stock, global equity manager Paul Black says biotech company CSL has been a “phenomenal investment”.

Black is the co-chief executive and portfolio manager at WCM Investment Management (WCM). WCM is a California-based fund manager that operates in Australia in partnership with Contango Asset Management.

Black says: “CSL is an innovative business that builds the essential ingredients for health care. CSL has been in our portfolio for about seven years and has definitely been one of or best performers.”

Healthcare was the standout industry on the Australian Securities Exchange last year, with stocks in the sector producing an average return of 18.3 per cent. Among the healthcare stocks, CSL was up 31 per cent and Resmed 44.9 per cent.

CSL also scores well as an ESG stock. It was ranked in the top quartiles in Macquarie Securities’ ASX 100 ESG ratings last year

WCM Investment Management

WCM entered the local market in 2017 when Contango Asset Management hired it to manage a new listed investment company, Contango Global Growth.

The fund was listed on the ASX in June 2017 and changed its name to WCM Global Growth Fund in June last year. WCM also manages a local ETF, WCM Quality Global Growth.

WCM Global Growth produced a return of 22.5 per cent for the 12 months to the end of March, compared with an 11.7 per cent return for its benchmark – the MSCI All Country World Index (ex-Australia).

It holds 20 to 40 stocks and has strong positions in the healthcare, IT and financials sectors.