Sean Farrington says the New Year rally is rightly running out of puff. Now this value investor is hunting bargains in unusual places.
Sean Farrington, portfolio manager at the Bahamas-based global fund manager Holowesko Partners, isn’t surprised that the rally“In our view, that’s now running up into the reality of what’s going to happen with earnings as we go into the rest of the year, and the reality of what’s going to happen to consumers as we go into the rest of the year.
That performance also benefited the ASX-listed Future Generation Global investment company, which added Holowesko to its roster of fund managers last year following a review of investment performance. FGG announced on Tuesday it had delivered a 4.2 per cent investment return in the December half, beating the MSCI World Index by 0.5 per cent; its full-year dividend jumped 16.7 per cent to 3.5¢, representing a fully-franked yield of 5.9 per cent.
But it’s Alphabet’s flagship advertising business, which accounts for 80 per cent of the company’s revenue, where Farrington sees the most value.“Everybody’s worried about the slowdown and growth on the ad spend side. And it’s true that Google is now such a big player in the ad market that inevitably if you get economic weakness that’s going to spill over into their revenue, but we still think there’s a long runway for them to grow that top line.
The firm has also done well riding the rally in Hong Kong stocks recently, but it’s the cash-rich companies of Japan that hold even more allure. Farrington gives the example of little known manufacturer Nabtesco, which has a 60 per cent share of the global market for gears used in robotics – and 20 per cent of its equity in net cash. While, Farrington says opportunities like this are divorced from those macro ructions.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New York’s new drug problem: what to do with a billion dollar weed mountain?Cannabis farms are booming upstate, but red tape frustrates newly legal shops in the city. Result: confusion – and a very big stash
Read more »
The year the West woke up from pacifist groupthinkVladimir Putin thought the fashionable belief in peaceful multilateralism meant Western leaders would ultimately accept his invasion and occupation of Ukraine. He was wrong, writes Alexander Downer.
Read more »
Five-year-old girl awarded for saving brothers after horror Christmas Day crashSynthia Rose Day was honored with a Children of Courage award for looking after her two younger brothers for 55 hours after a Christmas Day crash killed their parents.
Read more »
Revealed: one in 100 police officers in England and Wales faced a criminal charge last yearFigure has surged over the past 10 years with pressure growing for officers to be sacked on the spot
Read more »
Manchester United ends agonising six-year droughtThe 'crisis' is over for United fans. 👇 9WWOS CarabaoCup
Read more »
'Abandoned and failed': Lismore locals hit out a year after floodingHarper Dalton, who is one of thousands in Lismore still waiting to learn how and when they can relocate their homes to higher ground, told Sky News Australia he and other flood victims had effectively 'been left to our own devices'.
Read more »