Following the sharp setback in global equity markets it is important to reassess the case for Japanese equities within developed markets. Simply put, corporate margins continue to be improved through ongoing restructuring, cash flow generation is strong, balance sheets are liquid and in many cases debt-free and valuations are very low. The shareholder will progressively continue to get a better return going forward. The following example, courtesy of John Seagrim at CLSA succinctly makes the case.
September saw large cap stocks regaining some ground as the bluechip SMI index advanced 1.4% during the month, outperforming the SPI Extra Index, which fell 2.4%.
The current market environment continues to be characterised by an outperforming pharmaceutical sector and the market’s negative sentiment towards industrial stocks has persisted, though September saw a slight recovery in European “value” investment indices that was largely driven by a rising oil price and a consequent recovery in the energy sector.
In this article published in Le Temps on 30 July 2018, our CEO Jean Keller explains how some infrastructure sectors can protect portfolios in case of a trade war.
- Major US Infrastructure networks overhaul planned if legislation passes
- Infrastructure equities provide proven benefits to investors
- Private finance and privatisation likely to be required
- Will experienced, foreign operators be able to access the build-out?
The US government’s ambitious plan to overhaul the country’s infrastructure networks over the next decade provide a huge opportunity for investors, but uncertainties abound: how much of the proposed legislative framework will eventually be voted through, how to buy into what assets. and how much access foreign operators will be able to secure.
In this interview published in Fund Selector Asia, our CEO Jean Keller explains how concerns about family-owned companies tend to be distorted and how data shows they outperform their non-family counterparts.
In this video published on Fund Selector Asia, our CEO Jean Keller discusses QUAERO CAPITAL’s value investing strategy that targets family-owned small caps in Europe.
Can you explain the strategy? What sets you apart from other managers in this space?
At QUAERO CAPITAL we believe that the best returns are often to be found in the companies that are the least well-followed. In spite of the fact that there are only 247 shares quoted on the SIX exchange, there are over 60 companies where there is no research coverage. Many of these companies are small and liquidity problems can deter larger fund managers. QUAERO CAPITAL can use its size to our advantage and invest in companies where others cannot.
Following company visits and new attractive prices, we have invested in three Swiss stocks for our European Small Companies strategy: Composite materials specialist Gurit, private bank EFG International and high precision machining company Tornos. With a total of 69 holdings, we will now be pruning smaller positions in coming months.
Investors have been hit as Carillion plc, a major UK construction and facilities management company, entered forced liquidation suddenly in January, creating negative sentiment for the entire social infrastructure sector in the UK.
Value investors are returning to Greece, hopeful that if improving macro economic conditions persist, the coming year will prove a major boost to Greek small cap stocks.
Uncertainties certainly persist: the government has still to agree a post-bailout strategy with the Troika of lenders (made up of the International Monetary Fund, The European Commission and the European Central Bank). There is an estimated EUR 1 billion shortfall in Greece’s proposed 2018 privatisation programme (which may impact personal tax and VAT measures), and an election cycle is set to begin soon.