April opened with panic selling and closed with a sharp rebound. A proposed blanket 10 % US import tariff sent global equities into correction territory – between mid February and 7 April the Nasdaq fell 26%, the S&P 500 22% and the ASX 200 19%. A 90 day pause on the tariff steadied nerves, and by month end the markets had recovered significantly.
For the month, the ASX All Ordinaries Accumulation Index gained 3.6%, our High Conviction Portfolio 3.8%, Growth Equities Portfolio 2.4 %, the Balanced Equities Portfolio 2.4 % and the Enhanced Yield Portfolio was flat.
During market volatility it’s important not to de‑risk or switch strategies at the wrong time. Sharp sell offs tempt investors to change style, but we stay the course and use pullbacks to buy the businesses we know best at attractive prices. History shows that disciplined buying during market dislocations sets up the next leg of outperformance.
Portfolio Positioning and Key Updates
We reduced cash levels from around 12 to 16% down to 5% while there was emotional selling in the market, and we added to quality names – some of which had had fallen meaningfully despite stable earnings.
New positions included Polynovo and infrastructure provider APA Group. Increases included National Australian Bank, APA, Life360 and Xero. Exits included Ramelius Gold, Fortescue and Webjet after strong moves or rising risk.
We also saw positive updates in the portfolio from investments such as Smart Parking, Superloop, Zip Co and Australian Finance Group. This reinforced our conviction during a volatile period.
April Newsletters
Outlook
In May so far, trade deal progress and our portfolios are performing well. The market has priced in a rate cut at next month’s RBA meeting. Softer retail sales, easing inflation and a 4.1 % jobless rate give policy makers room to act if tariff uncertainty lingers. Easier policy would support equity valuations, though headline risk stays elevated while trade tensions get resolved.
We continue to back companies with pricing power, recurring revenue and tight cost control, and we see AI accelerating shifts in profit pools. We’re confident we bought several high quality businesses at compelling prices in April. With cash up slightly from mid month so we still have dry powder for fresh dislocations, and we are optimistic the recent investments will underpin strong performance in the future.
Regards
The Endeavor Team
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*Note: Performance of the strategy group is representative of individual client portfolios, although performance can differ due to inherent differences between clients portfolios such as initial entry timing, legacy holdings or requested stock exclusions. Performance measured is after fees, taxes and franking credits. Monthly performance figures include an accrual for fees charged quarterly.
