November was a solid month for the Endeavor portfolios despite a more volatile backdrop. The Equities portfolios outperformed the broader market, while the Enhanced Yield Portfolio continued its steady pattern of monthly gains. We used the rise in volatility to our advantage and reduced cash weightings in the equities portfolios as a number of high quality opportunities emerged through the month.
Market Context
The environment continues to shift as inflation stays firm and the outlook for rates becomes less predictable. Even so, earnings trends remain stable and the broader setup into 2026 is constructive. Many companies we assess still look expensive, which reinforces the value of active management rather than allocating passively through ETFs. Elevated valuations are most common in the top 50, where ETFs are required to deploy capital due to liquidity. Outside this group we continue to find stronger balance sheets, clearer growth runways and a broader set of genuine opportunities.
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Positioning
Our allocations reflects our market view. The portfolios remain tilted toward high quality industrials that are less exposed to the general economic cycle, alongside an increased allocation to commodities, particularly copper, where fundamentals continue to improve. Lower cash levels now reflect both our constructive market stance and the opportunities we acted on during November’s volatility.
Outlook
We look ahead to 2026 with confidence. Stronger balance sheets, structural growth exposures and the redeployment of cash leave the portfolios well positioned to benefit as volatility continues to create opportunity. Our focus remains on disciplined research, prudent portfolio construction and owning businesses capable of compounding earnings through the cycle.
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.
