Perpetual portfolio manager Nathan Hughes is shifting focus toward undervalued healthcare and software names, arguing that the rise of prediction markets has disproportionately pressured betting stocks.
The fund manager, who oversees approximately $12 billion in assets for the Australian equities team, highlighted Ramsay Healthcare and Flutter as key areas of interest, alongside Glencore, as investors navigate a volatile market environment.
The strategic pivot comes as Australian equities are poised for a positive open, supported by improving global risk sentiment.
This optimism is largely driven by a pullback in oil prices, which has eased following growing hopes for a diplomatic resolution to ongoing tensions in the Middle East.
The broader market backdrop suggests a potential rotation away from high-beta sectors like gambling toward more defensive or structurally undervalued plays.
Hughes’ commentary underscores a broader theme of market repricing, where traditional betting stocks face headwinds from the emergence of prediction markets.