Libsyn Directory

Moody Mr. Market: Finding opportunities in the Canadian small-cap space amid changing market psychology | EP153

Release Date: 05/02/2024

Fishing in Less Crowded Ponds: Identifying opportunities in Emerging Markets | EP155

Art of Boring

Portfolio Manager Wen Cheong debunks the perceived challenges of investing in the emerging market space, highlighting his team’s concentrated approach and candour. He details how his focus on best-in-class management and passion for identifying attractive valuations has powered returns. Key points from this episode: • Small-cap companies are a pond with fewer rocks; opportunities can be found in steady, established businesses with competitive advantages. • The slump in semiconductor demand in 2023 was primarily driven by a normalization in post-pandemic demand and macro...

A deep dive into the psychological approach to finding opportunity | EP154

Art of Boring

Building on his conversation in Episode 153, Portfolio Manager Samir Taghiyev takes a deep dive into the mental models and frameworks that Mawer uses to evaluate company management teams, particularly within the small-cap space. Using both personal and financial examples, he illustrates the benefit of exploration and exploitation, striking a balance between focus and curiosity, and identifying opportunities on the S curve of the corporate lifecycle. Key points from this episode: Company management can be evaluated by determining if they are growing revenues while controlling costs and risks....

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...

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...

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...

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...

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...

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...

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...

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...

More Episodes

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 key to finding opportunities created by delayed market reactions
Small caps may see more exaggerated dynamics due to retail investor involvement

Host: Kevin Minas, CFA, Institutional Portfolio Manager
Guest: Samir Taghiyev, CFA, Portfolio Manager

For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/moody-mr-market-finding-opportunities-in-the-canadian-small-cap-space-amid-changing-market-psychology-ep153

This episode is available for download anywhere you get your podcasts.

Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.

Twitter - https://www.twitter.com/Mawer_Invest

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

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