Barramundi Limited outperformed the S&P/ASX200 in April with a 4.4% gross return, boosted by NEXT DC’s landmark data centre deal and capital raise, while healthcare stocks faced headwinds from Cochlear’s profit downgrade.
- Barramundi’s gross return +4.4% in April beats ASX200 benchmark
- NEXT DC signs record 250MW contract and raises $1.5bn equity
- Cochlear downgrades FY26 profit amid geopolitical and market pressures
- Fineos secures new contracts in Australia and North America
- Portfolio rebalances with reduced healthcare and increased NEXT DC exposure
April Outperformance Driven by NEXT DC’s Breakthrough Deal
Barramundi Limited (NZX:BRM) delivered a robust April performance, with its gross portfolio return hitting +4.4%, comfortably outperforming the S&P/ASX200 Index’s 2.6% gain (hedged 70% to NZD). The standout contributor was NEXT DC, which surged 28% after announcing a record 250MW contract with a major hyperscale customer for its new S4 data centre in Sydney. This deal alone eclipses the total contracted megawatts signed in the previous 15 years, pushing contracted capacity up 60% year-on-year to 667MW.
This momentum was further fuelled by NEXT DC’s ambitious $1.5 billion equity raise, complemented by $700 million in hybrid securities and $750 million in wholesale notes, boosting its cash and undrawn facilities to $6.6 billion. Barramundi participated fully in the equity offer, reflecting confidence in NEXT DC’s growth trajectory and its potential to more than quadruple EBITDA to over $1 billion by FY30/31 through the buildout of its data centres including S4.
Healthcare Sector Faces Headwinds Amid Cochlear Downgrade
In contrast, the healthcare sector dragged on returns, with Cochlear’s shares plunging 44% following a profit downgrade that cut FY26 underlying NPAT guidance by up to 28%. The downgrade was attributed to geopolitical disruptions from the Middle East conflict causing surgery cancellations, particularly in the US and Europe, alongside tougher reimbursement conditions and budget constraints in key markets such as China. While Barramundi views these challenges as largely cyclical, the timing and resolution remain uncertain.
Resmed, another healthcare holding, bucked the negative trend with a solid Q3 FY26 result delivering 8% constant currency revenue growth and a 20% lift in underlying NPAT, slightly beating consensus. The company also expanded its sleep health footprint with the US$340 million acquisition of Noctrix Health, targeting the large restless legs syndrome market.
Portfolio Rebalancing and Market Dynamics
Reflecting sector dynamics and company-specific developments, Barramundi trimmed its holdings in CSL and Cochlear while increasing exposure to NEXT DC. The fund also benefited from strong performances in Fineos, which rose 26% after securing new contracts in Tasmania and North America, reinforcing demand for its integrated insurance software solutions.
Other notable contributors included oOh!media, which gained 24% following a nonbinding acquisition offer from Pacific Equity Partners at a premium to its prior trading price, and mining heavyweights BHP (+7%) and Rio Tinto (+4%) that reported resilient production despite weather challenges. The energy sector, however, gave back some gains amid easing geopolitical tensions, while banks like Westpac and National Australia Bank pre-emptively increased provisions ahead of their upcoming earnings releases.
Barramundi’s portfolio remains diversified across sectors with no gearing, maintaining a balanced exposure to financials (27%), information technology (22%), communication services (14%), and healthcare (12%). The fund’s adjusted NAV rose 4.3% in April, narrowing losses from the prior quarter’s challenging environment marked by AI fears and geopolitical risks, as detailed in the company’s Q1 NAV slump and portfolio shifts.
Bottom Line?
NEXT DC’s record contract and capital raise underscore the tech sector’s rebound potential, but ongoing geopolitical risks and sector-specific headwinds in healthcare warrant close monitoring.
Questions in the middle?
- Will NEXT DC’s expanded contracted capacity translate smoothly into revenue and EBITDA growth over the next five years?
- How quickly can Cochlear and healthcare peers recover from geopolitical and reimbursement challenges?
- What impact will rising bank provisions have on sector earnings in the upcoming financial results?