Moody Mr. Market: Finding opportunities in the Canadian small-cap space amid changing market psychology | EP153
Art of Boring
Portfolio Manager Samir Taghiyev discusses the current landscape of the Canadian small-cap space through the lens of the “Mr. Market” narrative and crowd-driven sentiments. Using Converge Technology Solutions as an example, Taghiyev sheds light on his team’s due diligence process and how they find opportunities by tuning out the noise. Key points from this episode: The mood of the markets can change very quickly, highlighting the importance of due diligence Investors should be aware of market narratives but not get caught up in them Diligence on business, management, and valuation is...
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Quarterly Update | Q1 2024 | EP152
Art of Boring
As markets continue on a dynamic trend, fixed income portfolio manager Crista Caughlin discusses the economy and factors that drove markets in the first quarter of 2024. In addition, the reemergence of a more typical correlation pattern between stocks and bonds, getting central banks off the sidelines, and the concern that markets may be being too complacent. Key points from this episode: Global growth improving, inflation moderating, and earnings relatively strong In Canada, growth has improved although consumption remains weak when compared to the U.S. Moving with caution: strong data has...
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Why Position Size Matters in Investing | EP151
Art of Boring
Portfolio Manager Manar Hassan-Agha discusses the importance of position sizing in investing and how factors like behavioural biases, market structures, and optimal betting strategies under the Kelly Criterion can impact returns at varying position weights. The conversation explores limitations in precisely calculating probabilities and edges for stock investments and how frameworks and checklists can be used dynamically to thoughtfully consider odds, edges, and optimal sizing for investment decisions. This discussion highlights the various personas or strategies that investors can adopt in...
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Playing the plan: Mawer's International equity portfolio | EP150
Art of Boring
Portfolio Manager Peter Lampert breaks down the decision to re-open the strategy to new institutional investors and the key inputs that determine the strategy’s capacity. In addition, “a tale of two acquisitions”: one head scratching, the other improving the investment thesis of the holding. Key Points From This Episode: Breaking down the decision to re-open the strategy to new institutional investors How the team determines the strategy’s capacity A puzzling acquisition by KDDI and a potential value creating acquisition by Novo Nordisk Evaluating the implications of rising interest...
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Post-Mortem: Learnings from 2023 | EP149
Art of Boring
In this episode, host Rob Campbell and 11 colleagues on the research team engage in a comprehensive post-mortem analysis, sharing candid reflections on their decision-making processes over the past year. This episode underscores the significance of learning from both successes and mistakes, highlighting the value of vulnerability and introspection within the investment team at Mawer. A Few Highlights: • Investing before comfort in competitive markets is necessary for returns • Less complexity in investment strategies often results in more alpha • Significant market...
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Introducing: The Mawer Global Credit Opportunities Strategy | EP148
Art of Boring
In this episode, newly appointed Fixed Income Portfolio Manager at Mawer, Brian Carney, shares his insights on global credit strategies. With over 30 years of experience in the investment industry, Brian discusses his career journey, the evolution of credit markets, and his perspectives on current market dynamics. He highlights Mawer's approach to managing credit risks and opportunities, detailing the new Global Credit Opportunity Strategy at Mawer. Key Points From This Episode: Brian Carney's extensive background in finance and credit markets The evolution and...
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Global Equities: Moneyball, Weighing Decisions, and Finding an Edge | EP147
Art of Boring
In this episode, Manar Hassan-Agha, co-manager of the Global Equity Strategy, joins host Rob Campbell to discuss applying the 'Moneyball' process in evaluating past investment decisions. They unpack the lessons learned from this approach, emphasizing long-term thinking in investment strategies. The conversation highlights critical insights from the Moneyball statistics, the importance of decision quality over short-term results, and the value of inactivity in investment management. Key Points From This Episode: 'Moneyball' approach to evaluating investment decisions in...
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Quarterly Update | Q4 2023 | EP146
Art of Boring
In this episode, Kevin Minas sits down with Crista Caughlin, Lead Portfolio Manager at Mawer, focusing on the key economic developments of Q4, including growth levels, inflation trends, and the resilience of financial markets. They speak on the nuances of the Canadian bond strategy and the impact of these economic factors on portfolio management. Key Points From This Episode: Volatility in Q4 with notable declines in interest rates and inflation Marginal changes in growth, with a slight downturn in Q4 Economic resilience despite rapid interest rate increases in...
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EAFE Equities: Japan, Interest Rates, and Managing Volatility | EP145
Art of Boring
In this episode, Dave Ragan, co-manager for the EAFE large-cap strategy, speaks on the current state and future prospects of EAFE markets. He delves into Japan's market challenges and opportunities, examines the impact of global interest rates and economic conditions, and explores the decision-making processes in market volatility. Key Points From This Episode: Japan's historical challenges and current state in the EAFE portfolio Chugai Pharmaceutical: A recent addition to the portfolio Market dynamics in 2023: Interest rates and soft landing...
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Emerging Markets: Recent Rebound, China, and New Opportunities | EP144
Art of Boring
Portfolio Manager Peter Lampert dives into the world of emerging markets, sharing what’s changed for the portfolio since last year, insights on where we’re seeing new opportunities (e.g., Brazil), and the impact of geopolitical risks in Eastern Europe. He also explores why we’ve reduced our weight and exposure in China and what a slowdown in emerging markets might mean for investors. Key Points from this Episode: Main drivers behind the portfolio’s rebound in performance from 2022 New additions from Brazil: Petro Rio, GPS, XP ...
info_outlineTop highlights from the team’s recent research trips and a few business models we’re excited about.
Highlights:
- Insights from visiting Norway, the Netherlands, Kazakhstan, India and some holdings—Equinor, AutoStore™, Ahold Delhaize, Adyen, Genmab, Kaspi, Weir, HDFC Bank
- Why we’ve been reducing our weight in China and our current thinking around regional exposures
- The unique competitive advantages of Compass Group and Chugai
- Current and future implications of AI for the portfolio and different business models—NVIDIA, TSMC, ASML, Samsung, RELX, Wolters Kluwer, Teleperformance