Alec Cutler, a portfolio manager at Orbis Investments, reveals the secrets behind his fund's impressive decade-long performance and shares his contrarian investment strategies. Joining him is John Stepek, a Bloomberg senior reporter, who discusses the financial implications of potential political changes in the U.S., especially under a Trump presidency. They explore market dynamics, the rising interest in UK small-cap stocks, the contrasting roles of gold and Bitcoin as investments, and the challenges of green energy initiatives in the UK.
Alec Cutler highlights the importance of political stability in shaping market performance, particularly regarding UK equities and international investments.
The podcast discusses a strategic shift towards value investing and small-cap stocks due to the downturn in large tech companies.
Deep dives
Open Source AI for All
Meta's commitment to open source AI allows various groups, including small businesses, startups, and researchers, to freely download and utilize AI models. This initiative encourages innovation by making advanced technology accessible to a broader audience, which may lead to diverse and groundbreaking applications. By removing barriers to entry, such as costs and licensing fees, the initiative fosters a more inclusive environment for developing AI solutions. The overall concept emphasizes that when AI is available to everyone, the potential for communal benefits increases significantly.
Enhanced Instagram Protections for Teens
Instagram has introduced new features aimed at enhancing the safety of teen users on the platform. These include automatic protections that limit who can contact teens and control the content they can access. Users under the age of 16 will need parental approval to make changes to their privacy settings, ensuring that guardians are involved in online interactions. This initiative underscores Instagram's commitment to creating a secure space for younger users amidst increasing concerns over online safety.
Political Stability and Market Performance
The discussion highlights that political stability can significantly impact market performance, particularly in the context of UK equities. With a growing sentiment that the UK may offer a stable investment environment, there is increasing interest from both domestic and international investors. Attention is drawn to the potential for the upcoming US elections, with speculation that a Trump win could influence market expectations and trends. The focus on stability suggests that traders and investors may increasingly favor markets that appear less volatile and more predictable.
Investment Strategies Amid Changing Economies
The conversation delves into various investment strategies influenced by the current economic climate, emphasizing a shift towards value investing and small-cap stocks. As large tech companies experience a downturn, investors are turning their attention to sectors that are seen as undervalued, particularly in the UK. The ongoing transition highlights the expectation of budding opportunities in small-cap equities that may outperform their larger counterparts due to perceived lower valuations. The discussion also points out that grasping these opportunities could result in favorable growth prospects as investor sentiment shifts.
Alec Cutler of Orbis Investments joins to explain what’s behind his fund’s decade of strong returns. Plus, senior reporter John Stepek joins to discuss what a Trump Presidency might mean for your money.