China in Focus: Traversing the Emerging Markets Landscape | EP170
Release Date: 10/23/2024
Customizing the Last Mile: AI, Innovation, and Mawer’s Tech Evolution | EP 192
Art of Boring
In this episode, Justin Anderson, Mawer’s Chief Technology Officer, sits down to discuss the evolving “build-in vs. build-out” technology framework. Justin explains how Mawer approaches technology decisions—balancing vendor solutions with in-house customization—and shares practical examples from the firm, including proprietary solutions such as trade&MAWER and M42. The conversation explores how advances in AI and large language models are accelerating the shift toward more tailored, efficient solutions. He also offers insights for investors on what to look for in management teams...
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Energy, Gold, and Growth: Current Insights on Canadian Markets | EP 191
Art of Boring
Mark Rutherford, co-manager of Mawer’s Canadian large cap strategy, discusses the ongoing volatility in oil, the unique role of gold, the outlook for Canadian banks, and the potential impact of recent political changes. Mark also shares how the Mawer team is leveraging AI to enhance their investment process and decision-making. Key Takeaways: • Oil Market: Global demand is rising, driven by economic growth and higher incomes, while supply is shaped by geopolitics, OPEC, and technology. • Canadian Banks: Loan growth is slow and provisions are higher amid uncertainty, but banks remain...
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Finding Hidden Gems in Emerging Markets | EP 190
Art of Boring
Join Peter Lampert, Portfolio Manager of Mawer's Emerging Markets strategy, as he takes you on a journey from Polish meat counters to UAE boardrooms, revealing how a disciplined bottom-up approach uncovers extraordinary opportunities in overlooked markets. Key Takeaways: • Mawer’s bottom-up philosophy is consistent across markets, but emerging markets require a nuanced focus on the macro and geopolitical environment. • Emerging markets are highly diverse and less efficient, often offering more opportunities for disciplined, active investors. • On-the-ground research—such as recent...
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Navigating Uncertainty: Global Small Caps, Process Innovation, and AI at Mawer | EP189
Art of Boring
In this episode, Karan Phadke, Portfolio Manager for Mawer’s global small cap strategy, shares insights on how small caps are navigating trade policy volatility, the importance of proactive management, and Mawer’s unique approach to process improvement and AI integration in investment research. Key points from this episode: • Small caps’ local focus provides insulation from global trade volatility. Importance of proactive management teams in uncertain environments. • Mawer’s “ant model” drives continuous process improvement and collaboration. • Systematic thesis...
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The Long View: Global Equity Positioning in Uncertain Markets | EP188
Art of Boring
In this episode, global equity co-manager, Manar Hassan-Agha, examines how tariff policies have created uncertainty for businesses, particularly impacting capital deployment decisions and supply chains. Manar explains how a focus on asset-light, service-oriented businesses with recurring revenue provides resilience during volatile periods, with limited direct exposure to tariff-vulnerable exports. Through specific company examples like Admiral Group, UnitedHealth, and a beauty products business, he illustrates how the team evaluates short-term price movements versus long-term intrinsic value,...
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Investment Opportunities in a Changing Military Landscape | EP187
Art of Boring
In this episode, we discuss the defense industry's evolution with equity analyst Joshua Samuel. He highlights the historical underinvestment in European defense, the recent increase in defense spending, particularly Germany's program, and the strategic importance of land systems. The conversation highlights how the current geopolitical environment has transformed defense from an underperforming sector to an investment opportunity, though valuations for companies like Rheinmetall now reflect much of this potential. Key Takeaways: Historical Underinvestment: European military spending dropped...
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Finding Silver Linings: International Investing Through Trade Policy Turbulence | EP186
Art of Boring
In this episode, portfolio manager, Peter Lampert discusses international equities and the impact of tariffs on portfolio management. He provides insights into how his team has been preparing for potential tariffs since Trump's campaign, explaining that most of their international portfolio companies have limited export exposure to the U.S. and instead operate primarily in domestic markets across various regions. He highlights their strategic decision to exit positions that are heavily dependent on global trade, while maintaining confidence in businesses with resilient management teams capable...
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Quarterly Update | Q1 2025 | EP185
Art of Boring
In this Quarterly episode, Crista Caughlin, lead portfolio manager for Canadian bonds, and Jeff Mo, lead portfolio manager for U.S. midcaps, discuss market performance through Q1 2025 and the significant volatility that followed in early Q2—particularly after "Liberation Day" when the Trump administration imposed sweeping tariffs, followed by retaliation from other countries, and then a partial pause. The discussion explores how these trade tensions have created uncertainty affecting business confidence, consumer spending, and investment decisions. Crista explains that the growth outlook has...
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Market Update: April 8, 2025 | EP184
Art of Boring
Mawer President and portfolio manager, Jim Hall, discusses the current market environment and the team's approach to risk management. The conversation covers what triggered the vast volatility and uncertainty seen in markets, potential scenarios to come, and what the team at Mawer is doing about it. He emphasizes the importance of staying calm, being prepared, and diversifying portfolios to manage risks. Host: Andrew Johnson, CFA, Institutional Portfolio Manager Guest: Jim Hall, CFA, MBA, President, Portfolio Manager This episode is available for download anywhere you get...
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When Tariff Waves Crash: Maintaining Course in Volatile Markets | EP183
Art of Boring
In this episode, U.S. mid cap equity portfolio manager, Jeff Mo, discusses the market's sharp sell-off following President Trump's announcement of widespread tariffs on nearly all U.S. trading partners. He provides both short and long-term perspectives on potential economic impacts, including reduced business investment and consumer spending, while explaining that Mawer's investment approach during this volatility remains focused on preparation as opposed to prediction. Key Takeaways: "Liberation Day" Tariffs - Trump administration announced widespread tariffs (10-40%) on most trading...
info_outlineIn this episode, Peter Lampert, lead portfolio manager of the International Equity Strategy, discusses the recent Chinese stimulus and its effects on emerging markets. He highlights key long-term risks in China, including weak sentiment, regulatory challenges, and geopolitical tensions, while emphasizing the potential of companies like Tencent and Tencent Music. The conversation also covers Turkey's Bim, a discount retailer thriving amid economic uncertainty. Peter explains how the portfolio's success stems from stock selection, especially with stealth performers like Vietnam’s FPT and Taiwan’s IGS, and the importance of balancing macro risks with company-specific growth potential.
Key Takeaways:
•China's recent stimulus signals a shift from restrictive policies to boosting economic growth, leveraging the U.S. Fed's easing cycle to inject liquidity and stabilize the economy.
•The stimulus could mitigate three key challenges: weak consumer sentiment, regulatory uncertainty, and geopolitical risks. While long-term issues persist, the focus on growth reduces the likelihood of worst-case scenarios in the near term.
•Macro factors and bottom-up analysis are deeply intertwined in portfolio decisions. As risks shift, so do portfolio positions.
•Higher macro risks in China lead to applying higher discount rates and requiring better ROI. Growth projections for economically sensitive companies are adjusted lower due to structural challenges, leading to exits when valuations no longer meet the stricter risk criteria.
•Companies with independent growth drivers can perform well despite China's economic challenges, as they are less reliant on the broader economy and can thrive even in a weaker market environment.
•One example is Tencent, whose strong management, dominant WeChat position, and conservative monetization approach offer growth opportunities. Despite China's economic challenges, Tencent can pull monetization levers, making its valuation attractive amid broader pessimism.
•This year’s strong performance of the emerging markets portfolio has been driven by careful stock selection, focusing on lesser-known "stealth performers" like FPT, IGS, and Aegis Logistics, which consistently generate shareholder value.
•Peter highlighted one such performer: Bim, a Turkish discount retailer. Bim has thrived despite economic challenges. With Turkey's economic outlook improving, Bim is positioned for long-term success as it continues to offer value to consumers.
Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager
Guest: Peter Lampert, CFA, Mawer Portfolio Manager
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
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