In this episode, Grayson Witcher, the lead manager of the U.S. Equity Strategy, discusses the key drivers currently impacting the U.S. economy, including inflation, interest rates, artificial intelligence, and the upcoming presidential election. He emphasizes the importance of diversification and avoiding sharp edges—particularly during an election year. Grayson outlines the importance of and reasoning for his team’s practice of monitoring company management changes in real-time and the value of investing in companies with strong leadership. Key Takeaways:
Host: Andrew Johnson, CFA, Mawer Institutional Portfolio Manager Guest: Grayson Witcher, CFA, AB, Mawer Portfolio Manager For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/the-u-s-equity-landscape-inflation-artificial-intelligence-and-elections-ep166
This episode is available for download anywhere you get your podcasts. -- Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at www.mawer.com.
Visit Mawer at https://www.mawer.com
Follow us on social:
LinkedIn - https://www.linkedin.com/company/mawer-investment-
management/ Instagram - https://www.instagram.com/mawerinvestmentmanagement/
Twitter - https://www.twitter.com/Mawer_Invest
In this episode of the podcast, credit analyst Curtis Elkington provides a comprehensive overview of the $50 trillion global commercial real estate market. He covers the current headwinds facing various property sectors, such as pandemic-induced challenges in the office sector and touches on the surprising resilience of the retail segment. Elkington sheds light on the complexities of the commercial mortgage-backed securities market and details the credit analysis process his team uses to evaluate potential investments with examples.
Key points from this episode:
• Over the past four years, commercial real estate as an asset class has faced potentially the most significant of headwinds, most notably the pandemic and the rise in interest rates. • While the pandemic had a different impact on each property sector within commercial real estate, higher rates had a much more uniform impact across the various industries. • The overall size of the commercial real estate market, which includes multifamily, office, retail, and industrial properties, is massive. In 2023, Savills estimated the total global property value was $50 trillion, of which the U.S. is the largest component. • Vacancy and capitalization rates are the two primary metrics used to assess the health of the commercial real estate sectors. In office, both vacancy and capitalization rates have increased significantly since 2019. • According to the St. Louis Federal Reserve, the 25 largest commercial banks have ~$860 billion in commercial real estate loans, which is only 6% of their collective assets. All the other banks outside of the top 25 have $2 trillion in commercial real estate loans, but that accounts for 30% of their total assets. • Over the past six months, the risk-reward on the credit side for several real estate companies was unattractive in all scenarios. • Some market participants believe that upwards of $100 billion, or 15%, of U.S. CMBS is currently mis-rated. • The credit team does two main things in its intensive analysis credit review. They assign a Mawer credit rating that's tied to valuation, and they establish a margin of safety that's tied to downside production. • With commercial real estate, just like any potential investment, the team reviews each issue and issuer on a case-by-case basis following a thorough and rigorous process before committing investor capital.
Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager Guests: Curtis Elkington, CFA, Mawer Credit Analyst
For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/skyscrapers-and-storefronts-insights-on-the-commercial-real-estate-market-in-2024-ep165
This episode is available for download anywhere you get your podcasts.
Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.
Visit Mawer at https://www.mawer.com.
Follow us on social:
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
Instagram - https://www.instagram.com/mawerinvestmentmanagement/
In this episode, Crista Caughlin, lead Portfolio Manager of the Canadian Bond Strategy, and Brian Carney, lead Portfolio Manager of the Global Credit Opportunities Strategy, provide their thoughts on recent economic data releases, a shift in central bank language, and recent market volatility. They delve into new issuance activity in the U.S. and Canada, widening spreads in the investment-grade and high-yield markets, and current portfolio positioning. The conversation concludes with an update on the growth and expansion of Mawer’s fixed income team.
Key points from this episode:
Host: Kevin Minas, Mawer Institutional Portfolio Manager Guests: Brian Carney, Mawer Portfolio Manager, Crista Caughlin, Mawer Portfolio Manager
For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/navigating-the-canadian-equity-landscape-dispersion-energy-transition-and-opportunities-ep163 This episode is available for download anywhere you get your podcasts. -- Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at www.mawer.com.
Follow us on social:
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
Instagram - https://www.instagram.com/mawerinvestmentmanagement/
In this episode of the podcast, Mark Rutherford, Co-Manager of the Canadian large-cap equity strategy, discusses the current investment landscape in Canada, highlighting the wide dispersion in sector performance and the impact of central bank policies. He delves into the long-term theme of the global energy transition and its far-reaching effects on various market sectors in Canada. Insights into insurance and banking sector performance are provided, as well as examples of specific portfolio holdings within the Canadian equity strategy. Key points from this episode:
Host: Andrew Johnson, CFA, Institutional Portfolio Manager Guest: Mark Rutherford, CFA, Portfolio Manager For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/navigating-the-canadian-equity-landscape-dispersion-energy-transition-and-opportunities-ep163 This episode is available for download anywhere you get your podcasts. -- Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at www.mawer.com.
Follow us on social:
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
Instagram - https://www.instagram.com/mawerinvestmentmanagement/
Twitter - https://www.twitter.com/Mawer_Invest
In this episode, Portfolio Manager Manar Hassan-Agha discusses how the Global Equity Team navigates an exuberant market environment while staying true to Mawer’s disciplined investment approach. He delves into the potential impacts of emerging trends, namely artificial intelligence (AI), and provides examples of the team’s measured approach to evaluating the hype and sustainability of these trends. He emphasizes the value of temperament, alignment, and identifying mispriced high-quality companies. Key points from this episode:
Host: Rob Campbell, CFA, Institutional Portfolio Manager
Guest: Manar Hassan-Agha, CFA, Portfolio Manager For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/marbles-and-billiards-navigating-the-highs-and-lows-in-global-equity-ep162 This episode is available for download anywhere you get your podcasts.
Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.
Follow us on social:
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
Instagram - https://www.instagram.com/mawerinvestmentmanagement/
Twitter - https://www.twitter.com/mawer_Invest
Portfolio Manager Crista Caughlin discusses the economy and factors that drove markets in the second quarter of 2024.
Key points from this episode:
Host: Kevin Minas, CFA, MBA, CAIA, Institutional Portfolio Manager Guest: Crista Caughlin, CFA, Portfolio Manager For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/quarterly-update-q2-2024 This episode is available for download anywhere you get your podcasts.
Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.
Follow us on social:
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
Instagram - https://www.instagram.com/mawerinvestmentmanagement/
Twitter - https://www.twitter.com/mawer_Invest
In this episode, Portfolio Manager Jeff Mo makes the case for investing in U.S. mid-cap equities, highlighting the country’s strong business environment, large domestic market, and GDP growth. He discusses current market trends, including artificial intelligence, and his team’s risk management evaluation, especially with a pivotal U.S. election looming on the horizon.
Key points from this episode:
Host: Rob Campbell, CFA, Institutional Portfolio Manager Guest: Jeff Mo, CFA, Portfolio Manager
For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/navigating-the-u-s-mid-cap-landscape-resilience-amid-uncertainty-ep160
This episode is available for download anywhere you get your podcasts.
Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.
Follow us on social:
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
Instagram - https://www.instagram.com/mawerinvestmentmanagement/
Twitter - https://www.twitter.com/mawer_Invest
In this episode, Portfolio Manager Jeff Mo discusses common behavioral biases that can hinder clear sell decisions, and the tools, such as checklists and trigger points, that can help slow down emotional thinking. He provides examples of companies that he and his team properly exited based on changing fundamentals as well as those they may have held onto for a bit too long, proving the power of the endowment bias. Key points from this episode:
Host: Rob Campbell, CFA, Institutional Portfolio Manager Guest: Jeff Mo, CFA, Portfolio Manager For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/from-buy-to-bye-sell-discipline-and-overcoming-behavioral-biases This episode is available for download anywhere you get your podcasts.
Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com. Follow us on social:
Twitter - https://www.twitter.com/Mawer_Invest
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/ Instagram - https://www.instagram.com/mawerinvestmentmanagement/
In this episode, we explore the growing electricity demands of data centers stemming from artificial intelligence (AI) with Chris Silvestre, Analyst on the U.S. Equity Team. He shares insights from a recent research trip visiting data centers in Northern Virginia—the data center capital of the world—and discusses challenges around meeting demands given constraints of land availability, energy generation and transmission, and the significantly increased power demands required to develop large language models.
Key points from this episode:
• Electricity demand in the U.S. has been relatively flat for a decade but is expected to increase 25% by 2050 due to electrification, ESG goals, and data center expansion to meet AI demand.
• For the same footprint and the same data center, you need 10 times more power for AI workloads than you did for the old-style data centers.
• Data centers cluster organically in hubs, such as Northern Virginia, to minimize data transfer costs, but this clustering strains power infrastructure.
• Meeting increased data center capacity demands faces land and energy constraints. While the U.S. has the ability to generate power, it may not have it in the right spots at the right time to support this new incremental demand.
• Businesses are proactively responding to increased demand by signing deals to secure data center capacity despite constraints, while governments are implementing policies and reforms to support AI development.
• With respect to AI or high-performance computing, there is a sense that this is a priority and will be a matter of national interest if not national security.
Host: Andrew Johnson, CFA, Institutional Portfolio Manager
Guest: Chris Silvestre, CPA, CFA, Equity Analyst
For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/watts-up-the-challenges-and-opportunities-of-powering-ai-ep158
This episode is available for download anywhere you get your podcasts.
Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.
Visit Mawer at https://www.mawer.com.
Follow us on social:
Twitter - https://www.twitter.com/Mawer_Invest
LinkedIn -
https://www.linkedin.com/company/mawer-investment-management/
Instagram - https://www.instagram.com/mawerinvestmentmanagement/
Portfolio Manager Karan Phadke discusses his views on the global markets and the performance of the global small-cap portfolio. He illustrates how businesses are adapting to and utilizing artificial intelligence (AI), highlighting the difference between the value-added reseller and IT consultant business models. Two portfolio holdings, CBIZ and Convatec, are discussed to demonstrate the team's focus on well-run, resilient companies that are trading at reasonable valuations. Key points from this episode:
Host: Andrew Johnson, CFA, Institutional Portfolio Manager Guest: Karan Phadke, CFA, Portfolio Manager
For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/navigating-global-small-caps-in-an-ai-transformative-world-ep157
This episode is available for download anywhere you get your podcasts.
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Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.Follow us on social:
Twitter - https://www.twitter.com/Mawer_Invest
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
In this episode, Portfolio Manager Colin Wong shares strategic insights on disruptive technologies and recent adjustments in the U.S. equity portfolio. Colin discusses how his team navigates market exuberance, consensus risks, and economic ebbs and flows with a focus on resilient returns. Through compelling examples, Colin provides actionable insights on benefitting from innovation without betting the farm on a single theme. Key points from this episode:
Host: Andrew Johnson, CFA, Institutional Portfolio Manager Guest: Colin Wong, CFA, Portfolio Manager For more details and full transcript visit: https://www.mawer.com/the-art-of-boring/podcast/u-s-equity-capitalizing-on-innovation-and-protecting-against-pitfalls-ep156
This episode is available for download anywhere you get your podcasts.
--
Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at www.mawer.com.
Follow us on social:
Twitter - https://www.twitter.com/Mawer_Invest
LinkedIn - https://www.linkedin.com/company/mawer-investment-management/
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