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‘The easy money’s been made’: what to own when the stakes get higher

The normalisation pulse has lifted nearly all of the market to this point. Perpetual Investments’ Vince Pezzullo says that’s a trick that only works once, and it’s businesses like Qantas and Boral that have shown a willingness to get in front of their COVID-19 demons.

Vesna Poljak
Vesna PoljakCompanies editor

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When Vince Pezzullo found himself buying Qantas Airways after the carrier hit up investors last year for $1.4 billion in fresh capital, it marked the end of a long stretch in the wilderness for the former market darling and Australia's most storied value manager.

"You need to be focusing on the businesses where it's not just about the cyclical recovery," the deputy head of equities at Perpetual Investments says.

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Vesna Poljak is the Companies editor. She was previously the Markets editor with a special interest in the investment industry, hedge funds and accounting. She is based in the Sydney newsroom. Connect with Vesna on Twitter. Email Vesna at vpoljak@afr.com

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    Original URL: https://www.afr.com/markets/equity-markets/the-easy-money-s-been-made-what-to-own-when-the-stakes-get-higher-20210205-p56zuo