Aberdeen and Perennial keeping the faith in South32

South32 has had a bad run since listing a month ago, however, two leading Fund Managers – Perennial and Aberdeen - are holding strong, citing the long-term potential of the company. Aberdeen Asset Management’s portfolio manager, Michelle Lopez says “Over the past month the key driver of the weakness has probably been weakness in the commodity prices that a lot of these assets produce, as well as some selling pressure from index funds, which we had expected. Over the short to medium term there are still significant opportunities to strip out costs through delayering the business and processes and systems that were applied to the assets (under BHP).” Perennial, a top-20 holder of the stock says “The business is attractive as many of these commodities are likely to currently be close to the bottom of their cycles with limited new supply coming on to the market.” (Source: The Australian, Paywall) (VIEW LINK)