Two compelling ideas with sustainable income

As investors we often look to follow the philosophies of the capital allocators with best track records, Buffett, Munger, Graham, Lynch the list goes on. However, Chris Hall, Chief Investment Officer of Ellerston Capital, says his biggest influence comes from Michael Chaney the current Chairman of Australian conglomerate Wesfarmers. Chris says that Chaney’s focus on return on investment capital (ROIC) has stuck with him through his career and is the single most important metric in his investment process.

In this interview, Chris explains his process in more detail, digs into his current outlook for equities and shares the sectors that look most appealing as well as two compelling ideas with sustainable income.

Topics discussed

  • Defensive sectors in the current environment
  • Finding sustainable equity income in an environment where earnings are being hit
  • The slow path forward for markets and some of the sectors facing the biggest challenges
  • Two compelling ideas with sustainable income
  • What it would take for Chris to turn bullish on Australian banks
  • Getting crushed by Slater & Gordon and the lessons from this experience
  • Bullish / Bearish / Neutral: How does Chris see the path forward for equities

Interested in ELVIS?

The ELVIS Fund is a fundamental, bottom-up Australian equity strategy with a clear focus on delivering low volatility and sustainable income for investors through actively blending multiple, distinct dividend yield strategies throughout the market cycle. Find out more here.

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