Preferred Shares Podcast A Primer on Salmon Farming with Nick Longhurst of Marathon Asset Management
Nov 21, 2025
In this engaging discussion, Nick Longhurst, a portfolio manager at Marathon Asset Management with over 30 years in fund management, dives into the fascinating world of salmon farming. He explains why salmon stands out among fish, highlighting its high value and farming efficiency. Nick also details the industry’s history and the challenges faced by new entrants due to strict regulations and market consolidation. He compares major players like Mowi and SalMar while addressing risks and technological threats, providing a comprehensive overview of this unique sector.
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Supply-Side Capital Cycle Investing
- Marathon invests using a supply-side, capital-cycle framework that prioritizes industry structure over demand forecasts.
- They seek both upper-cycle compounders and lower-cycle recovery opportunities with long time horizons.
How A Tax Shock Sparked Interest
- Nick first re-examined salmon after a Norwegian tax shock derated shares and opened a valuation window.
- He then studied the industry's history from wild fishing to modern aquaculture centered in Norwegian fjords.
High-Value, Efficient Protein
- Salmon is small by volume but high value because it grows well in certain geographies and fetches premium prices.
- Its feed conversion ratio (~1.3) and low freshwater use make it resource-efficient versus beef or pork.
