Equities

Tesla’s current valuation reflects aggressive assumptions about its dominance of the electric vehicle market and its ancillary businesses. While parts of Tesla’s exciting story may materialize, progress is unlikely to be as linear as the market suggests. In fact, the market may be overlooking several key risks

In 2021, Swiss equity investors should focus on companies with global industry leadership, innovative strength and healthy balance sheets. Among them, well-managed Swiss mid and small caps could be one of the most promising return sources next year.

Understanding potential value destruction from climate change is challenging. A strong framework can significantly improve visibility. There are hundreds of companies that appear to have value at risk from climate change greater than their market capitalization – climate zombies. Insights on where to find, and value, risks in this blog.

Unlike horses that need blinders to keep them narrowly focused on winning a race, investors should expand their field of vision to consider the risks around them. Matthew Benkendorf, CIO of the Quality Growth Boutique, shares 5 principles that are critical to help successfully navigate emerging markets.

Charlie Munger, Warren Buffett’s brilliant partner, famously remarked that their investment approach was “simple, but not easy.” After nearly 40 years of investing, Portfolio Manager Ed Walczak explores how the Quality Growth team aims to overcome the many challenges investors face today in determining the “true” value of a company.

Many emerging markets are more resilient to external shocks than in the past and can better withstand the pressures of a stronger US dollar. And so far, many EMs have been fairly conservative in their use of stimulus in response to Covid-19. This increases the potential for prosperous times ahead.

The ongoing trade war and eroding U.S.-China relationship have been a catalyst for making it less attractive for Chinese companies to seek a public listing in the United States. The Chinese government is finally making good on promises to open up domestic markets to foreign investors. Additionally, Hong Kong and China are taking steps to make local listings more attractive, especially to high-tech start-ups.

Our equity experts from the Quality Growth Boutique are constantly trying to find exceptional companies. In this insight, they explore businesses that may be high quality today that were not in the past. Does the current COVID crisis change the playbook for investors in any way?

Ethnic minorities account for 40% of the US population, 29% of bachelor degrees, but just 16% of Fortune 500 board seats. Sub-conscious bias plays a big role. A structured approach to hiring and mentoring are required for change. Diversity can drive innovation and shareholder returns.

Like a pendulum, once equity markets swing one way, they will swing back. Investors can manage market swings by actively allocating to international equities using 3 timeless tactics: diversification, exposure to a unique opportunity set of strong businesses, and buying at attractive valuations.

Portfolio Manager Ed Walczak and Client Portfolio Manager Grant Bughman provide an update on the markets, US Equity portfolio positioning and outlook.

3 steps to help navigate the storm: recognize change, keep an eye on your horizon, and get ahead of structural shifts that will follow the shock of death and economic damage. How we frame the crisis in terms of capital preservation and recovery will affect investment decisions.