Investment advice in Italian fiction

One of the most widely celebrated novels of the last 200 years, Guiseppe Tomasi di Lampedusa’s The Leopard is set during the Italian Risorgimento (the unification movement that consolidated disparate states into one Kingdom of Italy). While ostensibly it tells the story of an aristocratic family navigating social upheaval in the 1800s, it can also teach us something about investing today.

A-Shares: Most interesting opportunities in China’s cyclical and trade sectors

China’s A-shares are at crisis-level valuations for an economy that is still growing faster than most places around the world. Indiscriminate stock selling by local investors on the back of trade tensions with the US have left China’s A-share market trading at less than ten times earnings compared to 16 times a year ago. Such valuations provide compelling investment opportunities for the long term.

Frontier Markets: Banking on Further Kuwaiti Catalysts

Upon returning from our November 2017 research visit to Kuwait, we felt confident the economy was on improved footing after what had been an extended hangover from the 2008 financial crisis. However, what stopped us from getting more excited at the time was the fact many stocks had rallied hard on FTSE Russell’s announcement to move Kuwait to its Emerging Markets Index. Despite some positive meetings and witnessing companies making decent fundamental improvements, valuations appeared rich and we felt comfortable maintaining our significant country-level underweight.