Art of Boring Mawer Investment Management Ltd.

As markets continue on a dynamic trend, fixed income portfolio manager Crista Caughlin discusses the economy and factors that drove markets in the first quarter of 2024. In addition, the reemergence of a more typical correlation pattern between stocks and bonds, getting central banks off the sidelines, and the concern that markets may be being too complacent.

Key points from this episode:
Global growth improving, inflation moderating, and earnings relatively strong In Canada, growth has improved although consumption remains weak when compared to the U.S. Moving with caution: strong data has begun to cause central banks to be cautious around timing of interest rate cuts—they want to be confident higher inflation is in the rear view mirror Strong equity markets—a continuation of the 2023 technology-focused businesses doing particularly well, especially if they have a tie in to AI or semiconductors Too much complacency? We may not have seen the full impact of higher interest rates, and you can see that in some areas we are seeing continued pressure (e.g., real estate, mortgage arrears, loan delinquencies) Host: Kevin Minas, CFA, Institutional Portfolio Manager
Guests: Crista Caughlin, CFA, Mawer Portfolio Manager
For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/quarterly-update-q1-2024-ep152
This episode is available for download anywhere you get your podcasts.
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Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.
Follow us on social:
Twitter -  / mawer_invest
LinkedIn -   / mawer-investment-management

Portfolio Manager Manar Hassan-Agha discusses the importance of position sizing in investing and how factors like behavioural biases, market structures, and optimal betting strategies under the Kelly Criterion can impact returns at varying position weights. The conversation explores limitations in precisely calculating probabilities and edges for stock investments and how frameworks and checklists can be used dynamically to thoughtfully consider odds, edges, and optimal sizing for investment decisions. This discussion highlights the various personas or strategies that investors can adopt in dealing with both the winners and losers in their portfolios. Many of the concepts discussed in this episode are the research and works of others. Manar talks through how we think about applying their lessons dynamically and from a first-principles basis to the day-to-day management of portfolios at Mawer.

Key points from this episode:
Lessen the emotional impact of a large loss on a single position with position sizing Use the Kelly Criterion to determine the optimal size of a bet, taking unpredictability into account Resist the instinct to embrace either nihilism or precision in investment decision-making Tailor position-sizing approaches to your own investment style and risk tolerance

Portfolio Manager Peter Lampert breaks down the decision to re-open the strategy to new institutional investors and the key inputs that determine the strategy’s capacity. In addition, “a tale of two acquisitions”: one head scratching, the other improving the investment thesis of the holding.

Key Points From This Episode:
Breaking down the decision to re-open the strategy to new institutional investors How the team determines the strategy’s capacity A puzzling acquisition by KDDI and a potential value creating acquisition by Novo Nordisk Evaluating the implications of rising interest rates on real estate investments The balance needed to sift through the hype around AI while still being open to opportunities Host: Rob Campbell, CFA, Institutional Portfolio Manager
Guest: Peter Lampert, CFA, Mawer Portfolio Manager

For more details and full transcript visit: [episode link]
This episode is available for download anywhere you get your podcasts.

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Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.
Follow us on social:
Twitter - https://www.twitter.com/mawer_invest
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

In this episode, host Rob Campbell and 11 colleagues on the research team engage in a comprehensive post-mortem analysis, sharing candid reflections on their decision-making processes over the past year. This episode underscores the significance of learning from both successes and mistakes, highlighting the value of vulnerability and introspection within the investment team at Mawer.

A Few Highlights:
•  Investing before comfort in competitive markets is necessary for returns
•   Less complexity in investment strategies often results in more alpha
•  Significant market changes can take longer to affect companies than expected
•  Large acquisitions are risky; patience in evaluation is key
•  Leaning harder on inductive evidence and numbers for decision-making
•  Understanding the importance of parent companies in investment decisions
•  Finding a balance in analysis depth to retain key insights without becoming lost in the details

Host: Rob Campbell, CFA, Institutional Portfolio Manager
Guests:
Christian Deckart  CFA, PhD, Mawer Deputy CIO, Portfolio Manager
Mark Rutherford  CFA, Mawer Portfolio Manager
Grayson Witcher  CFA, AB, Mawer Portfolio Manager
John Wilson  CFA, Mawer Portfolio Manager
Samir Taghiyev  CFA, Mawer Portfolio Manager
David Ragan  CFA, Mawer Portfolio Manager
Siying Li  CFA, Mawer Equity Analyst
Jeff Mo  CFA, Mawer Portfolio Manager
Curtis Elkington  CFA, Mawer Credit Analyst
Peter Lieu  CFA, Mawer Portfolio Manager
Asim Hussain  CFA, Mawer Equity Analyst

For more details and full transcript visit: [episode link]
This episode is available for download anywhere you get your podcasts.

--
Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.
Follow us on social:
Twitter - https://www.twitter.com/Mawer_Invest
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

In this episode, newly appointed Fixed Income Portfolio Manager at Mawer, Brian Carney, shares his insights on global credit strategies. With over 30 years of experience in the investment industry, Brian discusses his career journey, the evolution of credit markets, and his perspectives on current market dynamics. He highlights Mawer's approach to managing credit risks and opportunities, detailing the new Global Credit Opportunity Strategy at Mawer.
 
 
Key Points From This Episode:
 
Brian Carney's extensive background in finance and credit markets
 
The evolution and current state of global credit markets
 
Introduction of Mawer's Global Credit Opportunity Strategy
 
Approaches to managing risks and capitalizing on opportunities in credit
 
Insights on fixed income strategies and market dislocations
 
Mawer's unique position and strategies in the investment landscape
 
Links:

Mawer Investment Management

In this episode, Manar Hassan-Agha, co-manager of the Global Equity Strategy, joins host Rob Campbell to discuss applying the 'Moneyball' process in evaluating past investment decisions. They unpack the lessons learned from this approach, emphasizing long-term thinking in investment strategies. The conversation highlights critical insights from the Moneyball statistics, the importance of decision quality over short-term results, and the value of inactivity in investment management.
 
 
Key Points From This Episode:
 
'Moneyball' approach to evaluating investment decisions in global equity
 
Importance of long-term thinking in investment decisions
 
Understanding decision quality beyond immediate results
 
The role of inactivity and patience in successful investing
 
Insights from specific case studies, including Couche-tard and Wolters Kluwer
 
Reflections on past investment choices and their long-term impacts
 
Discussion on asset intensity in portfolio risk management
 
 
Links:

Mawer Investment Management