‘Quality’ as a distinct category or style of investing is relatively new, growing in popularity during the early part of the century and gaining a strong foothold amongst the investment world post the global financial crisis. What perhaps has been lost on many investors though is the fact that, like all assets, quality needs to be underpriced to outperform in the long run. Valuations matter!
Co-CIO, Stephen Jenkins, provides an update on one of Sionna's holdings, Ahold Delhaize, and why we believe it is an attractive opportunity for value investors.
Kim Shannon, CFA, MBA
Founder and Co-CIO
Sionna's Founder and Co-CIO, Kim Shannon, discusses the attractive Canadian market and highlights a current holding.
Although there is not a completely reliable/foolproof predictive tool, a study of market history can provide some useful guideposts to steer wary investors. In this Soundbite, we share some historical charts that we believe illustrate how investors have interacted with market fundamentals previously, which appear to offer some rough guideposts in today’s market.
Sionna's Founder and Co-CIO, Kim Shannon, participated in a discussion where members of The Brandes Center's Advisory Board shared ideas on what defines a "neutral" country allocation.
By the middle of this decade, we will likely be into the next phase of potentially lower global carbon emissions with the continued replacement of higher emission energy (coal) with lower emission options (natural gas). We will likely see North America solidified as a global cleaner energy exporter and energy independence also may occur within this timeframe. We believe there are plenty of investment opportunities within the energy space that will help the world reach this next phase, but patience is required.
As value investors, we are often asked (sometimes more often than we would like!) how our investment process avoids the well-known value trap. So, at the 2023 Value Investor Conference held in London, when Ben Inker of GMO spoke about a little-known concept – that of growth traps – he confirmed our long-held suspicion that growth stock disappointments can be bigger threats to investor portfolios than the oft discussed value trap. His analysis piqued our interest.
Co-CIO and Portfolio Manager, Stephen Jenkins, discusses the recent "regime change" and why he expects value's outperformance to continue.
