When the equity markets are misjudging risk focus on what you can control
The concept of risk should be simple and straight forward, yet it repeatedly seems to get twisted upside down and back to front, causing bubbles and crashes. For investors, it is the coupling of human behaviour and risk systems that are the root cause of such outcomes. Today, when seven stocks account for 20% of […]
Policy U-turn in Turkey sets stage for economic and financial revival
President Erdogan won re-election in 2023 by running the economy hot; he pursued a strategy of strong economic growth to boost consumption, employment and wages. Although this economic policy might have been popular with the electorate, financial markets did not like it because inflation jumped. Turkey experienced inflation in the 1990s but had it under […]
The parable of the four fund managers
This is a tale of four fund managers at Global Megabucks Asset Management: Danny Defensive, Ivor Income, Vinny Value, and Sue Sensible. Danny Defensive was an extremely confident fund manager who drove a Porsche and would never stop to ask for directions even when he was hopelessly lost. He was also very convinced about his […]
Hazard pay, or why I love to hate my top ten companies
One of the most popular shows on the Discovery channel is ‘Deadliest Catch’, a reality series about the perilous voyages of Alaskan crab fishermen in the Bering Sea. The highly prized Alaskan king crabs, which the fishermen compete to catch, can command prices of up to US $90/lb, about twelve times the price of good […]
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 […]