Published on Livewire 05/12/2025 (Original Article Here) – Stephanie Gardner
Katana’s Romano Sala Tenna shares his highs and lows from the week and reveals two potential future winners hiding in plain sight.
Markets didn’t deliver fireworks this week, but they did deliver opportunities: a rare re-entry, a long-awaited turnaround in a key commodity, a stubborn underperformer, and high-quality assets still at appealing discounts.
Not everything went right… But plenty happened beneath the surface, and the edge went to those prepared rather than those trying to predict.
This Q&A leans into that quieter side of markets, where price action doesn’t always mirror fundamentals, timing matters more than opinions, and diversification becomes a safety mechanism rather than a theory.
Guiding the discussion is Romano Sala Tenna, a 28-year market veteran and co-founder of Katana Asset Management with a reputation for disciplined value investing and opportunistic, trend-aligned positioning.
In this Q&A, he shares what he’s accumulating, what he’s trimming, what caught him off guard, and what investors might learn from a week where most of the action happened off the front page.
Romano Sala Tenna, Katana Asset Management
What’s your most recent investment and why?
Both funds began accumulating AUB Group Ltd (ASX: AUB) post the selldown after EQT and CVC withdrew the potential $45 /share bid.
AUB has been one of the ASX’s best long-term compounders.
The splashdown toward $30 per share was a rare opportunity to re-enter this high-quality name. Our base case is a relatively quick recovery to $35 per share.
However, recent presentations have added to our confidence that the company has a steady pipeline of organic and inorganic growth opportunities. So we are open to holding for the long-term, depending on the price action.
Which investment did you add to your watchlist this week?
West Africa Resources Ltd (ASX: WAF). We actually already own the stock, but after the lengthy suspension, we have dusted off the file and are assessing where to go from here.
Our base case remains that this is an extraordinarily cheap producer that is mispriced despite the sovereign risk. Our base valuation, if we totally exclude the Kiaka mine, is close to the current share price.
And we actually see a pathway towards an outcome that is superior to pre-suspension. This would involve a minimal sell-down in Kiaka but with priority status to develop further deposits in-country.
What is the most recent investment you have trimmed or sold and what drove this decision?
We halved the position in the Cromwell Property Group (ASX: CMW). Both funds have experienced solid gains from this stock over the past 5 months (+50% with dividends), and the discount to NTA has narrowed significantly. The funds are repositioning into 2 REITs that are yet to rerate:
- Centuria Office REIT (ASX: COF), which maintains a 9% yield
- Healthco Healthcare REIT (ASX: HCW), is trading at a nonsensical 49% discount to NTA.
What’s your favourite chart or data point from this week?
At the risk of being boring and consensus, we are closely monitoring the gold price.
Technically, gold continues to behave in a textbook manner. And the fundamentals align with the ongoing push for US de-dollarisation and US government-inflicted devaluation.
Gold equities are significantly undervalued across the spectrum. If the gold price sustains these levels – let alone pushes higher – we are likely to see a renewed bout of analyst upgrades.
What was your weekly high – a standout market moment or highlight?
Pretty steady week.
The metcoal price has broken through the psychologically important $US200 barrier, and this is providing an overdue tailwind for local producers.
We have a good weighting in Whitehaven Coal (ASX: WHC) and a smaller, higher risk-return position in Coronado Global Resources (ASX: CRN).
What was your weekly low – a market disappointment or challenge?
Unfortunately, that’s the easiest question to answer: the ongoing malaise with Corporate Travel Ltd (ASX: CTD).
Both funds have about a 1% exposure to this stock – so not large but still painful! We’ve been over our file numerous times, and the price action, TTV wins and strong outlook prior to suspension provided no hint of what was to follow.
On this point, we are sometimes criticised for the number of stocks in the Katana portfolios (average 55 stocks in each), but black swan events such as this reinforce the need to maintain a high level of diversification.
What first drew you to markets and what continues to keep you inspired today?
Several things. Clearly, in the early years, it was the opportunity to generate life-changing, inter-generational wealth.
In subsequent years, it has really been about the challenge to consistently evolve and refine our craft in order to generate sustainable long-term out-performance.
And added to that is the opportunity now to work for others. We offer pro bono educational lectures on investing and understanding markets, and have set up a Charitable Trust to assist others – hopefully long after we are gone.
What’s one piece of advice you’d give to new investors?
I’ve got 3!.
Firstly, stay humble. Pride doesn’t just come before the fall; it guarantees the fall.
Secondly, understand the downside risk before you consider the potential upside.
Thirdly, understand – and I really do mean understand – the power of compounding.
How do you unwind when you’re not thinking about the market?
I’m heavily involved in my Church – although in Leadership that can create more stress than it alleviates!
I have a rural property in the Perth hills, which I escape to every chance I can.
And despite my age (57 and counting) I enjoy motorbikes – both offroad and tarmac. I currently own 3 road bikes, and all of them are of course…Katanas!
