Regal Funds Management is closely monitoring the market amid global uncertainty. Mark Nathan, head of fundamental research and a portfolio manager, notes parallels between the current economic climate and previous periods like the 1970s and the dotcom bubble. Regal Funds Management is a high-profile money manager. The firm manages investments across various asset classes, aiming to deliver strong returns for its clients.
Nathan is particularly focused on the impact of the Middle East conflict on energy prices. He notes that while oil shocks aren’t new, the current situation feels different due to its scale and direct impact on Australia as an oil importer. Despite these concerns, Nathan highlights opportunities in sectors oversold due to fears of disruption from artificial intelligence (AI).
He points to Netwealth and Hub24 as examples of companies with significant barriers to entry for AI-driven competitors, given the regulatory and fiduciary responsibilities involved in wealth management. Regal has initiated a position in Netwealth and has bought more shares in Hub24. Nathan also favours AUB Group, an insurance broker, believing that AI is less likely to displace brokers dealing with complex corporate risks.
Nathan emphasizes the importance of identifying catalysts for stock mispricing and highlights Regal’s focus on companies with strong network effects. He also underscores the value of Regal’s diverse investment team in navigating volatile markets and fostering conviction in investment decisions. Despite the demands of managing other people’s money, Nathan finds respite in swimming and exploring the Blue Mountains.
