Mandate Memo - 24th March 2026
Classic TACO trade
Fund Status:
Bal Start: $980,180
Bought: None
Sold: None
Bal End: $980,470
Cash: $649,884
Market Commentary
Markets rebounded in the states after Trump gave Iran a pause for another week. This is likely viewed by the market as Trump looking for a way to back out (classic TACO trade). However, the Iranians have come out to say they do not know who the US is negotiating with, would be no-one. Despite the complete lack of certainty, the market took the opportunity to rally. Oil prices fell, but energy stocks were mixed. The S&P 500 was up 1.2% with Discretionary, Materials, and Technology rebounding. As a result the Australian futures were up premarket.
Energy struggled today. The government is negotiating to keep the flow of energy despite six fuel tankers from Malaysia, Singapore and South Korea being cancelled or deferred. The refineries in those regions are grappling with the loss of oil flow from the Middle East.
In both the sectors that rose and fell (Materials, IT respectively), both indices showed that it was the smaller companies that benefitted from the rebound rally. I don’t believe we are in risk-on territory yet. Previously unloved companies like Audinate (AD8) rallied 7.5% today. Large cap tech favourites were down; WTC, XRO, TNE, CDA, NXT. Perhaps indicating that the AI disruption trade is still in vogue.
Portfolio Commentary
OBM started the session up 9% but ended the day flat. Materials as a sector was up 2.9% but it was the smaller and micro-cap companies that gained over their larger competitors. Top gainers today were 360, MND, MP1, and COL in that order. WDS sold off with the energy sector and oil but energy security appears to still be an issue (see Australian government deal note above).
I’m conscious that I’m holding a lot of cash at the moment, so I’m not getting the benefits of being fully invested. However, the cash buffer has been protecting the downside of the portfolio. Plus it provides dry powder for future deployment. My approach is to stage the deployment. Despite today’s sentiment in the market, I expect another leg down. “Agent Orange” could change things overnight with a tweet.
Investment Rationale
No trades today.
Disclaimer: This is a simulated portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.