Greig Barrow, a seasoned investor at Melbourne’s Akambo, faced a setback with an investment in Ramsay Health Care, a reminder of the risks involved in pre-deal acquisitions. Akambo started as a financial planning firm in 2007, later expanding into managed discretionary accounts. The firm now oversees $5 billion in assets, mainly for self-managed super funds and retail clients.
Barrow’s investment in Ramsay, triggered by a share price drop and appealing dividend yield, soured when the planned spin-off of its French operations faced difficulties. Despite this, Barrow’s fund has achieved a 17.5 per cent return over the past year, outperforming the S&P/ASX 100 Accumulation Index. His investment philosophy focuses on undervalued companies with potential catalysts, favouring large-cap stocks like BHP, National Australia Bank, and Commonwealth Bank.
Barrow capitalised on the 2022 market downturn by investing in value stocks and inflation hedges, anticipating the impact of COVID-19 stimulus measures. This included strategic investments in resources stocks like BHP, Rio, and Fortescue, as well as gold miner Newmont. He also sees value in ASX Ltd, despite challenges with the CHESS replacement project, and QBE, citing its improved return on equity.
Looking ahead, Barrow is optimistic about AGL Energy’s dividend potential and has recently added to his position in Santos, anticipating increased revenue and dividends from upcoming projects. He remains vigilant about commodity market risks and recently adjusted his supermarket holdings, switching from Coles to Woolworths based on revenue considerations and margin improvement potential.
