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Ausbiz: The stocks to build defensive positions

13 November 2025

 

Alvia Portfolio Manager, Chris Scarpato, joins ausbiz as markets cruise near all time highs. With equity valuations stretched and sentiment looking complacent, his message is timely: it’s time to get defensive.

In the interview, Chris unpacked why core infrastructure is stepping into a larger role within Alvia’s portfolios. With valuations in US tech pushing well beyond historical norms, the risk-reward balance has shifted. The focus now is on protecting capital, prioritizing steady cash flows and businesses with genuine, durable moats.

Chris highlighted two positions that capture this defensive tilt:

  • Getlink (PAR: GET): The Paris-listed owner of the Channel Tunnel lease. Its assets are impossible to replicate, its competitive barriers are entrenched and its free cash flow profile remains consistently resilient.
  • APA Group (ASX: APA): Australia’s dominant gas pipeline operator, underpinned by take-or-pay contracts and expanding exposure to renewables through recent Alinta Energy acquisitions.

These holdings illustrate what we look for when markets turn uncertain: inflation-linked cash flows, hard-to-replace assets and business models built to withstand volatility.

To hear Chris’s full discussion and insights, click on the link below.