The failure of grocery delivery start-up MilkRun reminds MST Marquee’s investment strategist of the unravelling of the dotcom boom in the 2000s.
As a fresh-faced Credit Suisse analyst in 1999, Hasan Tevfik experienced firsthand the irrational exuberance and rapid unravelling of a tech bubble.MST’s Hasan Tevfik is presenting at this year’s AFR Alpha Live event.Having just transferred to the investment bank’s London office, Tevfik remembers the euphoria that swept across global markets during the dotcom boom, epitomised by his first work Christmas party in the UK.
Tevfik believes the demise of MilkRun exemplifies the perils of investing in companies that aren’t generating a profit, particularly as soaring interest rates make it harder for businesses to fund their way to profitability.loss-making companies since 1999 was worth just 24¢ Xero, and fellow tech stock WiseTech Global, are among the six shorts that MST recommends as part of its Australian investment strategy, with the firm also suggesting 12 long ideas.Tevfik is also wary of the financials sector, particularly companies that are more sensitive to stresses in the global funding market triggered by the
The other side of the barbell involves exposure to China’s economic reopening, which Tevfik describes as MST’s “most preferred area of the market right now”.
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