Three things that got the team talking this week - Firetrail Investments

Weekly insights from the Trail

Three things that got the team talking this week

June 23, 2023June 30th, 2023

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1. Around the market grounds…

The S&P 500 has recovered all the losses since the First Fed rate hike back in March 2022. Insiders and the retail flows have been helping. Retail investors purchased $1.5 billion worth of single stocks in the week ended Tuesday, an all-time record according to Evans.

Source: Barchart (Date range: April 2022 – June 2023)

Source: Thomson Reuters (Date range: June 2022 – June 2023)

Weekly retail order flow

Source: Evans

Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.

2. Oil search…

Chinese imports of Malaysian oil hit a fresh all-time high in May. But this amount is well above what the country actually pumps. In reality they are rebranding Iranian crude.

Source: Bloomberg

3. You can’t escape the AI machine…

SocGen’s AI indicator news flow is only going one way.

Hewlett Packard released an interesting datapoint on their exposure to AI. They have seen AI related orders increase to $1.6bn, from $800m when they last reported their 2Q result on 30 May, aka 2x in 3 weeks! This has largely been due to strong demand from Hyperscalers.

And we got an interesting update from S3 Global Opportunities Fund holding Weyerhaeuser on how even a timber REIT is using AI. It is helping them with tree mapping, water identification and timber inventory.

Source: Evans

Source: Weyerhaeuser

Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.

Disclaimer

This article is prepared by Firetrail Investments Pty Limited (‘Firetrail’) (ABN 98 622 377 913, AFSL 516821) as the investment manager of the Firetrail Australian High Conviction Fund (ARSN 624 136 045), the Firetrail Absolute Return Fund (ARSN 624 135 879), the Firetrail Australian Small Companies Fund (ARSN 638 792 113) and the Firetrail S3 Global Opportunities Fund (ARSN 653 717 625) (‘the Funds’). Pinnacle Fund Services Limited ('PFSL') (ABN 29 082 494 362, AFSL 238371) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) (ABN 22 100 325 184). The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the relevant Fund are available via the links below. Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

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