February 2025

What attracted you to a career in the investment industry?

There were a few factors at play here but above all I wanted an intellectually stimulating career and one that could generate tangible outcomes. I’ve been lucky to start my career in this industry as a size and sector agnostic investor who has the opportunity to meet dozens of management teams each year from start-ups through to FTSE 100. My impression is that this profession affords you the unique position of observing and understanding the forces shaping a variety of businesses, markets, and the wider world. It’s also enjoyable putting in the hard miles to form a view on the future prospects of companies and their share prices, however, the quality of your judgements are easily measurable given that success and failure are quantified in hard financial terms.

What trends have you seen recently/what should we be paying attention to in the market?

For me, the most striking dynamic remains the stark valuation discount of high-quality publicly traded UK companies across many sectors, both to their global listed peers and comparable M&A transactions. This discount is partly attributable to our home market being out of favour compared to the US, where the ‘Mag-7’ stocks have ridden a wave of AI-related fervour, and partly due to high interest rates which have made ‘risk free’ returns more attractive. We’re of the view that US valuations have reached highly unsustainable levels, presenting more risk than reward to investors at this stage. Conversely, UK-listed companies with quality fundamental characteristics trading at discounted valuations offer compelling short-to-medium term upside. Private equity is recognising this opportunity, as shown by accelerating takeovers of UK-listed companies and I think any closing of the UK discount over the next 12 to 24 months should produce a strong period of outperformance for these stocks.

What’s the best piece of advice you’ve been given?

I’ve been fortunate to meet many interesting and experienced individuals in the early stages of my career, both those running UK companies and from across the investment industry. One piece of advice stands out from when I was an intern which is that ‘a great company doesn’t make a great investment’. It’s one thing to find businesses you think have high-quality credentials, for example, leading market positions and pricing power, high margins and cash generative, structural growth tailwinds in their end-markets and more. It’s another to assess whether the market is expecting too little or too much from those companies. Failing to realise that valuations incorporate lofty assumptions about a company’s future can lead to poor investment decision-making, and this simple advice has become a bedrock of how I try to appraise investment opportunities.

What has been the most interesting thing you’ve read/watched recently?

Sticking to the investing theme, I recently watched an excellent interview of ex-Fidelity star fund manager Anthony Bolton by Norges Bank CEO, Nicolai Tangen. At his peak, Bolton managed five times more money than other UK mutual fund manager and saw several market booms and busts across a 40-year career in investing. He is famous for his ‘contrarian’ style, seeing stock market opportunities where others saw excessive risk and potential losses. In his interview, he describes both the philosophy and methods underpinning his long-term winning approach, as well as the psychological travails that come with a career in investing. He also touches on his views on global markets today, highlighting how he considers it imperative to avoid the US, even suggesting that Chinese equities may offer outsized returns over the longer term.

---

Please note: The views and opinions expressed in this interview are those of the individual financial professional(s) and do not necessarily reflect the views or opinions of Alma Strategic. These insights are provided for informational purposes only and may not be relevant at the time of reading, as market conditions can change rapidly. The information provided should not be construed as investment advice or a recommendation to buy, sell, or hold any financial product or security. Individuals should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Alma Strategic disclaims any responsibility for the accuracy or completeness of the information provided in this interview.