Navigating Market Volatility: Insights from a $20-Billion Money Manager
In a world where market volatility reigns supreme, savvy investors are searching for opportunities hidden within international stocks. One money manager stands out in this turbulent landscape: Peter Lampert, a portfolio manager at Mawer Investment Management Ltd. in Calgary. With an impressive $20.1 billion in assets under management, Lampert is leading the charge in discovering stocks that thrive amid uncertainty.
The International Stock Landscape
A Growing Appetite for International Investments
Lampert’s enthusiasm for international stocks precedes their recent surge in popularity. "There’s still a lot of opportunity in international markets," he asserts, highlighting sectors like defense and semiconductors that continue to attract investment despite the overwhelming economic uncertainty. This sentiment is underscored by his Mawer International Equity Fund, which boasts a 15.1% return year-to-date as of May 31, grasping an impressive 20.4% return over the past year.
Keys to Success: Strategic Stock Selections
Focus on High-Caliber Holdings
Lampert identifies some “excellent, world-class companies that have been overlooked.” His fund’s top holdings reflect this philosophy, including:
- Taiwan Semiconductor Manufacturing Co. Ltd. (TSM-N)
- Rheinmetall AG
- Tencent Holdings Ltd.
Each holding approximately 4% of the fund, these companies have the potential to drive performance even amidst market fluctuations.
Lampert’s Stock Picks: The Heart of the Portfolio
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM-N)
As the world’s leading manufacturer of semiconductor chips, Taiwan Semiconductor is the cornerstone of Lampert’s portfolio. Its unique ability to produce complex chips for high-demand companies like Nvidia and Apple positions it as a crucial player in an increasingly semiconductor-dependent world. Despite geopolitical tensions in Taiwan, Lampert emphasizes the company’s strong management and technological investment as reasons for its attractive valuation.
Deutsche Börse AG (DBOEY)
Next is Deutsche Börse, Germany’s largest financial exchange operator, specializing in interest rate derivatives. With the global economic landscape rife with uncertainty, the demand for such products has surged, positioning Deutsche Börse favorably in a volatile market. “When there’s more volatility and economic uncertainty, having something like Deutsche Börse in your portfolio is benificial,” Lampert notes.
Compass Group PLC (CMPGY)
Lastly, Lampert lures investors’ attention to Compass Group, the world’s largest catering company. Despite the seemingly mundane nature of its business, Compass has demonstrated an exceptional ability to adapt during the pandemic. With an impressive purchasing scale in the U.S., Compass benefits from operational efficiencies that propel its growth, even if its current valuation is somewhat stretched.
Strategy Shifts: Recent Sales in the Portfolio
A Calculated Exit from DSV A/S (DSDVY)
In a calculated move, Lampert recently sold shares in DSV A/S, a global logistics player, for a 27% gain. His decision was influenced by increasing tariff uncertainties and the company’s diminished growth prospects post-acquisition of Schenker. “With less upside and increasing downside,” Lampert felt it was prudent to exit, showcasing the dynamic nature of investment strategies.
Preparing for the Future in a Volatile World
Peter Lampert’s investment approach reflects a keen understanding of market dynamics. While other managers may shy away from international stocks during turbulent times, Lampert proactively seeks profitable avenues for investment. As economic conditions fluctuate, his insights and strategies can serve as a guiding light for investors eager to capitalize on future opportunities.
Engage with Opportunity! Stay updated on international market developments and explore investment opportunities actively being discussed in financial circles. The world of finance is rich with potential, even amidst uncertainty. Investors who adapt their strategies, like Lampert, stand to gain the most.
For more on international investments, consider visiting The Globe and Mail for the latest financial insights.
