Allan Gray has added CSL to its $2.6 billion Australian equities fund, capitalising on recent market volatility. The money manager also increased its holdings in Woolworths and Amcor during what has been described as one of the most challenging earnings seasons on record for the ASX. This period has seen billions of dollars wiped off stock values, creating opportunities for strategic investments.
Portfolio manager Suhas Nayak indicated that the fund had realised profits from high-performing stocks such as gold miner Newmont and Telstra. These profits were then reinvested into blue-chip companies that experienced significant sell-offs in the past month, including CSL. Allan Gray’s move mirrors a similar investment by Airlie, which also bought into the blood plasma giant after its shares declined sharply.
CSL’s share price experienced a 17 per cent drop following announcements of job cuts and plans to spin off its vaccine business. Continued sell-offs throughout September pushed the share price below $200, a level not seen since 2019. CSL is a global biotechnology leader, developing and delivering innovative medicines, including those that treat bleeding disorders and immune deficiencies. They also research, develop, manufacture, and market a range of vaccines and diagnostics.
This strategic repositioning by Allan Gray reflects a broader trend of fund managers seeking value in established companies amid market corrections. The fund’s actions suggest a belief in the long-term potential of these blue-chip stocks despite current market headwinds.
