Things are changing in global markets. There are noticeable shifts taking place. The world’s capital is rotating. As always, many factors are at work, but we might be witnessing a once-in-a-generation shift away from US assets, which have recently dominated global capital allocations.
Global investors are diversifying their portfolios.
That is why I was keen to host this episode.
David Seaman of Alpha Cygni Asset Management and a seasoned emerging markets investor joins me for a fascinating discussion with Sean Peche, the manager of The Ranmore Global Equity Fund.
Sean recounts how he honed his value investing credentials at Orbis after qualifying as an accountant in South Africa and before launching Ranmore in London in 2008.
Sean has a first-hand take on how capital flows have shaped equity values and built up today’s imbalances.
While relative value is not sufficient reason for capital to flow, it is a necessary pre-condition. Sean says there are now multiple reasons investors, typically fully loaded in the US market, want to recycle their capital.
He talks about how he looks for value, why he has recently moved overweight in the UK, why emerging markets have many developed market characteristics, and why he doesn’t meet the management of the companies he invests in.
As he says, he can best objectively determine the effectiveness of management by watching what they do, not necessarily by listening to what they say.
Sean delivers a master class on the principles of value investing combined with an acute sense of how the world is changing and how best to load up on asymmetric risk opportunities that will likely operate in his favour as we confront an unforecastable future.
Now, please enjoy our conversation with the maverick, Sean Peche ..
Brought to you by Progressive Equity
