Navigating Tariff Tensions in Canada: Risks and Opportunities | EP179
Release Date: 02/13/2025
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, we discuss the escalation of U.S./Canada tariff tensions with Mark Rutherford, co-manager of Mawer’s Canadian equity strategy. Mark provides historical context of how we got here; highlights the potential economic impact tariffs may have on the Canadian economy; provides specific portfolio holding examples of how businesses and industries may be affected; and mentions several potential benefits for Canada. Ultimately, he stresses that adhering to a disciplined, long-term investment approach is vital amid uncertainty.
Key Takeaways:
- In the U.S., manufacturing’s decline has driven trade and financial deficits, exacerbated by a strong dollar. Tariffs aim to correct these imbalances.
- Being diversified and adjusting portfolio positioning from a bottom-up and scenario planning lens is key amidst uncertainty.
- Tariffs could cause a potential Canadian recession, a weaker dollar, and lower interest rates. The team is monitoring U.S. dollar strength, risk havens, and possible global currency interventions while assessing the broader economic impact of tariffs on prices and growth
- On the flip side, Canada could benefit from reduced internal trade barriers, increased infrastructure and energy projects, and greater political will to attract capital—potentially driving long-term economic growth, job creation, and higher tax revenues.
- For now, the recommendation is to focus on “prepare don’t predict,” maintain discipline amid market swings, avoid rash decisions, monitor exposures, and seek long-term opportunities.
Host: Andrew Johnson, CFA, Mawer Institutional Portfolio Manager
Guest: Mark Rutherford, CFA, Mawer Portfolio Manager
For more details and full transcript visit: https://mawer.com/the-art-of-boring/podcast
This episode is available for download anywhere you get your podcasts.
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Founded in 1974, Mawer 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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