Jeroen Boogaard

Western carmakers have weathered competition from Japanese and South Korean newcomers in the past. Yet, according to investors, not all will survive the current upheaval, as reflected by the depressed valuations of some legacy automakers.

Small-cap stocks have long underperformed their large-cap counterparts, now trading at a discount. For those with a long-term perspective, this could represent a compelling entry point, says Scott Woods, manager of the Columbia Threadneedle Global Smaller Companies fund.

The large-scale investment cycle in data centres currently offers the best investment opportunities for AI investors, says AI fund manager Tobias Rommel.

As after the bursting of the internet bubble at the beginning of this century, there is a danger that growth stock valuations will fall significantly, according to David Cohen, co-fund manager of the Robeco BP US Large Cap Equities fund. 

With a sophisticated dividend strategy, the Goldman Sachs Eurozone Equity Income Fund has been scoring above average for decades. “We spend our risk budget mainly on stock selection and do not deviate much from the benchmark in terms of sector and factor exposure,” said Nicolas Simar of Goldman Sachs Asset Management in an interview.

Equity investors cling excessively to certainties and undervalue innovations, leading to particularly strong return prospects for certain growth stocks, asserts Tim Garratt, an investment specialist at Baillie Gifford.

Private banks are navigating challenges in discerning customers’ sustainability preferences, hindered by a lack of common definitions and necessary data. The struggle persists as new legislation under Mifid 2, effective since August 2022, mandates including sustainability factors in suitability tests. Oxford Risk’s survey among wealth managers reveals industry-wide difficulties in implementation.

Companies that help prevent CO2 emissions play a crucial role in the transition to a low-carbon economy. They unfairly remain under the radar of investors, argues Raj Shant, managing director at Jennison Associates, in an interview with Investment Officer.

Investors often overlook the growth potential of companies exposed to megatrends like the energy transition and artificial intelligence. Those who discern the transformative potential early and stay invested might reap significant returns in the next decade.

High inflation is far from tamed, and profit margins are expected to deteriorate. Therefore, it is prudent to adopt a more defensive stance in portfolios, according to Christoph Schmidt, senior portfolio manager of DWS Concept Kaldemorgen, in a with Investment Officer.