A revival of the physical world: NGEN looks like Emerging Markets in 2002
The manufacturing winners of the last 20 years such as China and Korea look set to be challenged by the next generation of emerging markets (NGEN). We believe that countries such as Vietnam, Indonesia and Romania are on track to contest the world’s production hubs over the next two decades, driven by powerful secular tailwinds. […]
Redwheel celebrates five years of next generation emerging markets equity
London, 30th April 2024 – Redwheel, the specialist independent investment manager, has marked the fifth anniversary of the Redwheel Next Generation Emerging Markets Equity Fund, co-led by respected emerging markets Portfolio Managers James Johnstone and Victor Erch. The US$679.6m fund has outperformed the MSCI Frontier Emerging Markets Index, returning 120% over the last five years […]
Prospects for an economic recovery and transformation in China
It seems that many investors have almost forgotten about China’s five-year bull run from February 2016 to February 2021, when the MSCI China Index gained over 100% in dollars, at a compound growth rate of over 15% per annum. The MSCI China technology sector posted even more impressive gains of over 30% per annum over […]
Response to the offer of Anglo American from BHP
It is unsurprising that Anglo American is an attractive target for BHP. Anglo American has some great assets, particularly in copper. Their new Quellaveco mine in Peru is now up and running, it is one of the largest mines to be developed in many years, with a high ore grade and new technology making it […]
Is blood glucose monitoring the next big wellness trend portfolio builders should care about?
Continuous glucose monitors (CGMs) have revolutionised diabetes care since the first CGM was approved by the FDA in 1999, offering patients a way to monitor their glucose levels continuously without the need for frequent fingerstick tests. The technology has improved significantly since then, becoming more accurate, user-friendly and integral to the management of type 1 […]
Response to the offer for IDS from EP Group
Ian Lance, Co-Head of the Redwheel Value & Income Team, Co-Portfolio Manager, Temple Bar Investment Trust. We note the statement from the Board of IDS confirming that on 9 April 2024 it received a preliminary and conditional non-binding proposal from EP Group regarding a possible cash offer for the entire issued and to be issued […]
When the Jimmy Choos don’t fit
Mr Market’s reaction to news can oscillate wildly, which is why it is important to remember to follow a process and not let emotions drive decision making. A case in point is Tapestry, the parent company of the Coach and Kate Spade fashion brands. When we invested in Tapestry our investment thesis centred around the […]
The return of the total return kings
Similar to the 2000s, we believe many investors are focusing on the prospects of high-growth US tech stocks and overlooking the potential relatively undervalued UK market. This is causing UK companies to turn to corporate takeovers, or to take matters into their own hands through share buybacks. In this paper, Ian Lance, Co-Head and Portfolio […]
Opportunities in small caps could be most attractive in 20 Years
In this paper, we draw asset allocators’ attention to what we believe to be a rare opportunity to capitalise on an unusual set of circumstances leading to a material mis-valuation of European small caps. Our intention is twofold: firstly, to attempt to explain why this opportunity exists; and secondly, to outline why we think the […]
Is there a gap between perceptions and reality for EM investors in China?
Investors are potentially being served a misleading picture of China – one that differs materially from the reality observable on the ground. This is the view of The Redwheel Emerging Markets Team, following a recent trip to the country. PMI results for manufacturing, consumer goods, and high-tech all exceeded market expectations at the end of […]