Cochlear Sinks Health Sector as Gold Rebounds
Paper Mandate Market & Portfolio Commentary | 22 April 2026
Fund Status:
Bal Start: $1,071,100
Bought None
Sold: None
Bal End: $1,069,392
Cash: $244,446
Market Commentary
After another date of Middle East tensions, the US market finished in the doldrums for the second day in a row. We should all know the mechanisms by now, tensions up, oil price up. Which is exactly what happened. Gold also takes a hit down. Still roughly stable at $4,700/oz. Asian markets were up overnight though. They have been the standout performing regions over recent history. Not expecting a good day in the Australian market. If it follows the US trend; Energy will be up and everything else will be down. Could be a good buy day.
The ASX finishes down as expected but with some interesting nuances. Healthcare was the leading detractor, then Financials, then Energy. Cochlear cut their FY26 guidance, sending the stock crashing from $167 to $100. For context, the last time the stock was at $100 was 10 years ago. GDG also had a strong fall today. Despite FUM increasing overall, investment returns reduced FUM by $1.1b. The quarter on quarter growth was slower than expectations. Shares have now dropped to a 52 week low. As a contrarian strategy, a solid business on a 52 week low is a red cape to a bull.
Portfolio Commentary
GemLife (GLF) target price was raised to $5.66 by Morgans, changing their recommendation to a Buy from Accumulate. Good news for the portfolio given the poor performing day. WTC bucking the trend in Tech by ending the day up 1.0%. That buy yesterday worked out nicely. PC2 and OBM also performed well today for the gold exposure.
Regarding the detractors: HMC continues to be a thorn in the side of the portfolio. It is only a 2.5% position so not impacting the portfolio too much. Similarly JDO (2.8% weight), and CCL (2.7% weight) fell in line with the Financials sector.
We are still holding a fair amount of cash but given the global uncertainty right now, it is prudent to a) reduce the sensitivity of the portfolio to market movements, and b) keep dry powder on hand.
Investment Rationale
Did not trade today.
Disclaimer: This is a simulated portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.