Jonathan Fell, Ash Park Capital - People Always Overestimate The Extent To Which Tobacco Is A Dying Business | #375

Dec 8, 2021

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ANECDOTE

Accidental Tobacco Analyst

Jonathan Fell's first job was at Smith New Court, later acquired by Merrill Lynch.
He started covering tobacco by chance when a senior analyst passed it off.

INSIGHT

Misunderstood Tobacco

Tobacco and beer are historically the best-performing stock market industries.
Tobacco is currently an attractive investment due to low valuations and high cash flow.

INSIGHT

Tobacco's Resilience

Tobacco investments are a cash flow story, priced as if the industry is dying.
Consumption is resilient, new products have prolonged cash flow and profit growth potential.

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In episode 375, we welcome our guest, Jonathan Fell, founder of Ask Park Capital, where he manages the Global Consumer Franchise funds.

In today’s episode, we’re talking all things consumer staples and tobacco stocks. Jonathan has covered the space for over 30 years and shares the drivers behind successful consumer staples. Then we walk through the evolution of the tobacco industry and why he likes the setup for tobacco stocks today. We touch on the company’s current valuations, factor profile, return drivers, and the impact of ESG.

As we wind down, Jonathan shares the impact of direct-to-consumer companies on large incumbents.

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This episode is sponsored by Masterworks. Masterworks is opening the doors to top-tier, blue-chip art investments to everyone. Visit masterworks.io/meb to skip their wait list.

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Disclaimer: Ash Park Capital LLP (“Ash Park”) is authorised and regulated by the Financial Conduct Authority in the United Kingdom (the “FCA”). Ash Park does not offer investment advice or make any recommendations regarding the suitability of its products. This communication does not constitute an offer to buy or sell shares or interest in an Ash Park Fund. Nothing in these materials should be construed as a recommendation to invest in an Ash Park Fund or as legal, regulatory, tax, accounting, investment or other advice. Prospective investors in an Ash Park Fund should seek their own independent financial advice. The offering materials for an Ash Park Fund may only be distributed in accordance with the laws and regulations of each appropriate jurisdiction in which any prospective investor resides.

Past performance is not necessarily a guide to future performance. Ash Park has taken all reasonable care to ensure that the information contained in this podcast is accurate, however it does not make any guarantee as to the accuracy of the information provided. While many of the thoughts expressed in this document are presented in a factual manner, the discussion reflects only Ash Park’s beliefs and opinions about the financial markets in which it invests portfolio assets following its investment strategies, and these beliefs and opinions are subject to change at any time.

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