Portfolio Adjustments
During the year, we increased our holdings in BHP, Woodside Energy Group, Telstra Group, Cochlear, James Hardie Industries and WiseTech Global. We consider long term prospects for all these companies remains strong. These purchases were transacted during periods of short term negative news flow, providing attractive buying opportunities for long term investors. All these companies hold strong market positions and generate meaningful free cash flow enabling reinvestment into their asset base for future earnings growth.
We initiated positions in five companies during the 12 month period: Ampol, Worley, Macquarie Technology, BlueScope Steel, and Sigma Healthcare. Ampol is Australia’s leading integrated energy company engaged in refining, supply and marketing of petroleum and maintains a significant convenience retail footprint. Worley is a market leader in engineering and consulting services to the global energy, chemical and resources industries. Macquarie Technology is a data centre, cloud and telecommunications business. BlueScope Steel is a global leader in metal coating and painting products servicing a wide range of end markets and Sigma Healthcare operates in wholesale and community pharmacy with a proposed merger with Chemist Warehouse, a market leader in operating retail pharmacies.
We exited Ramsay Health Care as significant structural changes in the industry are likely to continue to undermine their competitive position, and Domino’s Pizza Enterprises considering their long-term prospects appear to be increasingly challenged. Mineral Resources was sold because of the disappointing corporate governance practices that have emerged.