February 2026
Volatility has become a defining feature of equity markets in recent weeks, and the current reporting season has only reinforced how quickly sentiment can shift. In many cases, share price moves have been less about long-term fundamentals and more about short-term positioning, headline risk, and the growing influence of algorithmic trading.
Portfolio Manager Chris Scarpato recently spoke with Ausbiz about these dynamics, noting that in an environment where markets are increasingly reactive, clear communication from management teams has become more important than ever. With investor sentiment often driven by geopolitical developments and inflation-related headlines, market reactions to earnings updates can be amplified well beyond what underlying performance may justify.
Against that backdrop, Chris highlighted several areas where recent market moves may be creating attractive opportunities.
In media and classifieds, he pointed to News Corporation (ASX:NWS) as a compelling way to gain discounted exposure to the Australian real estate classifieds market through its holding in REA Group (ASX:REA).
In healthcare, Chris discussed the opportunity emerging in ResMed (ASX:RMD), where earlier concerns around GLP-1 weight loss drugs appear to be fading. He argued that increased awareness of sleep apnoea continues to support demand for ResMed’s devices and recurring consumables revenue, reinforcing the company’s structural position.
Chris also highlighted select healthcare leaders including CSL (ASX:CSL), Ramsay (ASX:RHC) and Sonic (ASX:SHL), which he sees as undervalued businesses with defensive qualities in a challenging market environment.
Overall, the discussion reinforced the importance of maintaining a disciplined, fundamentals-driven approach during periods where markets can be dominated by noise rather than underlying business performance.