Wage Shock Smashes Retail Sector, While SRG Rallies +16.6% & Life360 Jumps 13.3%
Paper Mandate Market & Portfolio Commentary | 2 June 2026
Fund Status:
Bal Start: $1,159,845
Bought None
Sold: None
Bal End: $1,169,211
Cash: $143,012
Author Note
We skipped our usual daily market wrap on Friday, May 29, 2026, to write the comprehensive monthly wrap-up instead. The numbers speak for themselves with portfolio generating a +7.13% return for May, outperforming the benchmark and broader market.
Pleasingly, our focus on technology and high-conviction mining services paid off, and the majority of returns were driven by stock selection. Today's session proved exactly why that strategy works, as a massive domestic regulatory shock created total chaos on the index level while our holdings, the diamonds in the rough, quietly perform.
Overnight Markets
Major US benchmarks pressed ahead to hit fresh record highs, despite slightly negative market breadth as only the Technology and Energy sectors finished in the green. Nvidia launched its new RTX Spark PC superchip, which sparked a powerful wave of momentum across chip and software stocks while successfully offsetting a sharp 6% intraday spike in oil prices. US factory activity hit a four-year high with the US ISM Manufacturing PMI jumping to 54 on a robust new-orders surge of 56.8, feeding into hawkish central bank concerns. The ASX 200 futures pointing to a flat-to-negative open for the local market.
Australian Market
The ASX 200 staged a good recovery after an early slump. Sentiment was challenged as the market digested blanket coverage of the Fair Work Commission’s 4.75% minimum wage hike for 2.8 million workers. The retail sector didn’t like this news as it presses on already thin retail margins.
Local tech caught the AI tailwinds from the US to post market-saving gains. These were led by WTC (+7.9%), Xero (+7.5%) and 360 (+13.3%). All of which we own in the portfolio. Ultimately, the activity today helped absorb the retail shock.
Portfolio Commentary
The portfolio was up today driven by gains from SRG (+16.6%) after booking $1.85b worth of contracts. Life360 rallied +13.3% from US tailwinds and subscription momentum. Large tech companies WTC and XRO had good gains of +7.9% and +7.5%, respectively. There is robust institutional demand for scalable corporate software. On the down side JBH fell -5.4% on fears of higher labor costs. Meanwhile OBM fell -2.5% despite the gold index gaining. BVS jumped +3.3%, pleasing to see as a new entrant in the portfolio.
Investment Activity
None.
Disclaimer: This is a paper portfolio. Content is for educational purposes only and does not constitute financial advice. Always do your own research.