Rhett Kessler – The emperor has no clothes

Are the big Australian banks value traps? As the disparity in valuations between value and growth stocks widen, Rhett and I discuss why. The impact of technological disruption has seen several growth stock multiples stretch well beyond traditional valuation methods, and Rhett believes that there are more rational returns to be found in less favoured companies such as Telstra and Viva Energy. The Pengana Australian Equities Fund is an absolute return focused fund that aims to deliver returns of 6% greater than the risk-free rate throughout the cycle. Since inception in June 2008, the fund has returned 10.23% p.a. as at October 2019.