April 2026
Chris Scarpato recently joined ausbiz to discuss how Alvia is thinking about portfolio construction in a market still shaped by elevated geopolitical risk, persistent inflation and a higher cost of capital.
The conversation centred on a question that matters more as conditions become less forgiving: what do you pay for earnings when the macro backdrop is unsettled and the market is less willing to give businesses the benefit of the doubt?
Chris spoke about the importance of focusing on earnings durability, pricing power and balance sheet strength, particularly in businesses with contracts, assets or market positions that allow higher costs to be passed through rather than absorbed. That thinking underpinned the discussion around names such as Aurizon, Cellnex, News Corp, Booking and Woodside.
It was a timely discussion on the types of businesses that can continue to hold their footing when growth is softer, inflation remains sticky and markets are still working through what deserves to be valued at a premium.