Meridian pick propels Craigs to top spot

Benmore power station owner Meridian Energy's instalment receipts returned 95.6 per cent for the year.Picture / Richard Robinson

Energy company’s post-election boom helps give brokerage best contest figures

Selecting Meridian Energy was the key to Craig Investment Partners taking the top spot in the 2014 Broker Picks competition.

The power generator and retailer's instalment receipts returned 95.6 per cent in the year to December 12, the end date for the calculations.

Like other listed power firms, Meridian's shares rallied after National's win in the September 20 general election, which swept away the regulatory risks associated with opposition policies that aimed to make electricity cheaper for New Zealanders.

Craigs did not include Meridian in its 2015 picks, but did have Contact Energy in its mix.

Medical device manufacturer Fisher & Paykel Healthcare and logistics operator Mainfreight also proved to be good choices for Craigs in 2014, returning 64.9 per cent and 32.4 per cent, respectively.

First NZ Capital, which narrowly missed out on top spot in theresults table, benefited from its picks of F&P Healthcare, Hellaby Holdings (17.4 per cent return), Airwork Holdings (35 per cent), Z Energy (35.3 per cent) and Contact Energy (33.2 per cent).

Six of the seven brokers that took part in the competition beat the NZX50 index, which returned 16.46 per cent.

Christchurch sharebroker Hamilton Hindin Greene made a good choice in Chorus (85.3 per cent return), but its overall performance was dragged down by its selection of A2 Corp (-21 per cent), NZX (-2.1 per cent), Steel & Tube Holdings (2.4 per cent) and Metlifecare (8.8 per cent).

Macquarie Securities' result was affected by its selection of embattled children's clothing retailer Pumpkin Patch, whose shares declined in value by 73.4 per cent during the competition period, and retirement village operator Summerset Group (-11 per cent). The remaining picks of Diligent Board Member Services (41.4 per cent), Air New Zealand (68.1 per cent) and Chorus meant Macquarie's portfolio was able to outperform the NZX50 with a 22.1 per cent return.

Brokers and their 2014 return
• Craigs Investment Partners39.6%
• First NZ Capital37.2%
• Goldman Sachs24.7%
• Forsyth Barr23.7%
• Macquarie Securities22.1%
• MSL Capital (formerly McDouall Stuart)20%
• NZX5016.5%
• Hamilton Hindin Greene14.7%