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, […]
A shift towards a better biodiversity future with Amanda O’Toole
Human activity continues to deplete biodiversity and degrade ecosystems. As the world feels the effects of this damage to nature, consumers and companies are putting in place measures to assess their environmental footprint, and investing in reducing their impact on our ecosystems. In this video, Amanda O’Toole, Portfolio Manager at Redwheel, highlights why she believes this […]
Inactivity alpha: Lessons in patient value investing from cartoon bears
One of the many pleasures of being a parent to young children is watching kids’ movies: relaxing in front of some great animated cartoons that, as a grown up, you’d probably be too embarrassed to go and see on your own. On the pretext of “having to look after the kids”, I recently enjoyed the […]
10 reasons to allocate to emerging markets
The primary justifications for exposure to emerging market equities have generally included faster growth with lower valuations than developed markets, with the benefit of diversification. Cheap valuations and low correlations remain a core attraction, and growth should improve as monetary policy is eased. GDP growth in emerging markets is currently estimated at 4.3% in 2024, […]
Active global equity: Tackling growth bias and the diversification dilemma
Active global equity funds have become a cornerstone of many portfolios as investors have switched from regional allocations. Offering the prospect of diversification and alpha generation, global active equities help investors reduce potential home bias, and access opportunities from the broadest universe of companies. However, we see the risk of a new bias emerging within […]
Identifying opportunities in the commodity complex: Gold
Can gold hold its value? Gold is acknowledged as a medium of exchange, a store of value and a unit of account. When President Nixon cancelled the convertibility of the US dollar into gold in 1971, the money supply came under the control of central banks. Since the collapse of the Bretton Woods system of […]