Pengana Australian Equities Fund has generated a return of 11.2% per annum over the past five years, providing handy outperformance against its benchmark for the fund's investors.
The fund recently released its June Quarter Update in which the portfolio manager noted that the market volatility caused by the "Brexit Referendum" had created an opportunity to deploy cash and acquire shares for the portfolio.
Five stocks which were highlighted as attracting significant dollars in the aftermath of Brexit were DUET Group (ASX: DUE), Caltex Australia Limited (ASX: CTX), CSL Limited (ASX: CSL), Medibank Private Ltd (ASX: MPL), Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group (ASX: ANZ).
It's noteworthy that Duet, Caltex and ANZ Bank are amongst the five largest positions for the fund which suggests the manager was comfortable adding to these already significant stakes.
Using June 24 as the post-Brexit date when markets globally took a tumble and from which global markets have since recovered, let's take a look at how the share prices of the above six stocks have performed…
- The best performer over this period has been CSL with a gain of 5%.
- The next best performer has actually been the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) with a gain of 3.3%.
- The two banks and Medibank are up by less than 2%.
- Caltex and DUET are both less than 1% lower.
Opportunities still available
While we don't know the exact price Pengana acquired shares at in the aftermath of Brexit (intraday volatility did send prices down further), it would be reasonable to assume that the average prices paid weren't dramatically different to today.
More importantly, for a long term investor, a slight difference in purchase price is unlikely to have a meaningful effect on the long term-investment returns of the above six stocks.
This could suggest that investors seeking potential stock opportunities may still find opportunities amongst the above six shares.
