Long-Term Investors See Value in the Renewables Space
Over the past few quarters, investors in the renewables power generation sector have pushed down valuations, questioning growth and return opportunities following a confluence of headwinds. However, while the stock market remains sceptical, we have seen private equity firms, utilities and renewables companies themselves conclude that valuations are now too attractive to ignore. We believe […]
What is the real impact of innovation on economic growth?
A wake-up call for investors in the AI era Global markets are in the grip of Artificial Intelligence (AI) euphoria. Current valuations[1] imply that AI will change everything, revolutionising industries and reshaping the way we work, travel and communicate. Central to the investment narrative is the expectation that AI will unlock massive productivity gains: automating […]
Monopoly money: Playing games and investing wisely
Sometimes, it is better to be lucky than smart. This adage was exemplified in the heat of the Second World War by the British Secret Service’s MI9 division, who were looking for innovative ways to smuggle escape kits to British prisoners of war (“POWs”) held captive across enemy lines. They had two particularly thorny problems […]
The big get bigger – concentrating on the “Fab Four”
Investors have become familiar with the “Magnificent 7” US stocks that have been important contributors to index returns and comprise over a quarter of the benchmark S&P 500 weight (as at 31 October 2024). The MSCI Emerging Markets Index has an equivalent “Fab Four” stocks, sectors and countries that have come to dominate its composition […]
Greenwheel research: Climate Adaptation in Emerging Markets in a 1.5°C World
This research from our sustainability insights partner, Greenwheel, is the first in a series identifying the relative gaps between need and capacity to create demand for adaptation solutions in emerging markets.
Contrary to popular belief, value investing is working again
Contrary to popular belief, value investing is working again. Ian Lance, Redwheel Value & Income explores how value has outperformed growth practically everywhere since November 2020. The obvious, arguably only, exception is in large cap US stocks. Should we consider this “the last shoe to drop”?
China’s Policy U-turn Ignites Equity Market
On 24th September, the Chinese government announced an economic and financial stimulus package to counter the country’s declining growth rate, which has been caused by weakness in the property market and cautious consumer spending.[1] Details of the measures implemented by the People’s Bank of China (PBOC), National Financial Regulatory Administration, and China Securities Regulatory Commission […]
Share Buybacks: The Good, the Bad and the Ugly
In his previous paper on UK share buybacks, Ian Lance, Portfolio Manager, Redwheel Value & Income, outlined how UK corporates could leverage low valuations to increase earnings and dividends per share. Some of the companies that he analysed have subsequently produced strong returns supported by a total return approach to share buybacks. However, in his latest piece, he delves deeper into the topic to highlight that, while some buybacks are good, some are bad, and some are even ugly.
Redwheel completes acquisition of Ecofin
London – October 1st 2024 Redwheel, the specialist independent investment manager, has completed the purchase of the assets of Ecofin, a specialist investor in sustainable infrastructure and environmental solutions, from Tortoise Capital. The deal was first announced in July 2024. Ecofin brings approximately $1.5 billion of assets under management (as of August 31, 2024) and […]
Speed chess and skinning cats: Multiple ways to lose money
For anyone who enjoyed the Olympics this summer, I’d like you to take a moment and spare a thought for Ali Farag. The Egyptian is the highest ranked men’s squash player in the world, according to the Professional Squash Association, and was the winner of the 2019, 2021, and 2023 World Championships. Alas, unlike skateboarders, […]