Telstra: 2 managers increased positions and 4 reduced them
Paradice Investment Management initiated a position in Telstra Group (ASX:TLS) recently, and the holding contributed to performance as the market rewarded the telecommunications company's defensive, dependable earnings. Paradice believes Telstra is executing well and is equipped with a solid balance sheet. The addition sits within a meaningful overweight in Communication Services, which Paradice says reflects opportunities in stocks oversold on AI-related concerns.
Investors Mutual Limited reduced its weighting in Telstra and now rates it a hold. The manager held a large position for many years on the view that mobile margins were unsustainably low, but believes that thesis has played out as Optus has returned to profitability and is approaching its cost of capital. IML expects that once profitability recovers, competitors eventually compete it away. The manager also agrees that while Starlink satellites cannot fully replace mobile networks, they reduce the value consumers place on Telstra's network advantage.
