EM Fund Stock Picks & Country Commentaries (2024 Highlights)
Research highlighted in our 2024 posts with a focus on specific stocks or stock picks, podcasts or other pieces that could be considered “evergreen” for the info they contain, etc.
As of the start of the new year, there probably aren’t too many new fund updates or new research available (see our continuously updated post containing all funds is here). Therefore, I have gone through all 2024 posts to try to highlight excellent research pieces with a focus on specific stocks or stock picks (to help you generate investing ideas for your portfolio) or other topics that can be considered “evergreen” for the information they contain:
abrdn had these non-EM stock focused pieces:
🔬🌍 This piece discussed five interesting non-emerging market European stocks - Sweden based safety solutions for automated and robotic production lines maker Troax Group AB (STO: TROAX / FRA: 5TOA); Germany based commercial kitchen stock Rational AG (ETR: RAA / FRA: RAA / OTCMKTS: RTLLF); Norway manufacturer (of products from Lignin) Borregaard ASA (OSE: BRG / FRA: BO4 / OTCMKTS: BRRDF); Dutch semiconductor packaging group BE Semiconductor Industries NV (AMS: BESI / FRA: BSI / OTCMKTS: BESIY); and global health, nutrition, and beauty stock DSM-Firmenich AG (AMS: DSFIR / FRA: ZX6 / OTCMKTS: DSMFF): 🔬 European equities: football frenzy - As Europe’s finest football players compete in this summer’s Euros, we’re excited to spotlight some of the standout firms powering our own small-cap and sustainable equity strategies.
🔬🌍 This was an interesting piece about German listed ticketing and events business CTS Eventim AG & Co KGaA (ETR: EVD / FRA: EVD / OTCMKTS: CEVMF) and small appliances designer and marketer SharkNinja (NYSE: SN): Global smaller companies: cautious consumers? - We look at two stocks that are lighting up the small-cap sector. Since the dawn of commerce, companies have grappled with a crucial question: what are consumers willing to spend their money on?
🔬🌐 This piece discussed their recent visit to Brunello Cucinelli SpA (BIT: BC / FRA: 8BU / OTCMKTS: BCUCF): Small- and mid-caps: dressed for success - Read our article to discover the trends driving small- and mid-caps, supply-chain dynamics, and a stock that stands out.
Janus Henderson Investors had these non-EM focused pieces:
🔬🌍 This piece mentioned several European small cap stocks beyond the scope of this Substack but worth noting: “Cheap is not enough” – finding value in a muted market - If attractive valuations for smaller companies aren’t enough to gain investors’ attention in the current cycle, just what else can small caps offer investors as a potential source of value?
🔬🌐 This report has a number of tables listing cash rich stocks, the heaviest borrowers, etc.: How are companies navigating higher debt levels: latest study - The fifth edition of the Janus Henderson Corporate Debt Index measures the extent to which the world’s largest companies are financing themselves with borrowings and how affordable and sustainable those borrowings are. It also showcases the latest views from our expert fund managers.
🔬🌍 This piece covered Unilever plc (NYSE: UL) and Pernod Ricard (EPA: RI / FRA: PER / OTCMKTS: PDRDF / PRNDY) (who are heavily invested in emerging markets) among other European stocks: European espresso: Consumer goods firms looking to recoup market share - As part of our Espresso series, providing an expert blend of views on European equities, Research Analyst David Barker considers how consumer staples firms are responding to what has been a difficult trading environment.
🔬🌐 Barclays has this report for AI lovers: 150 trends to 2030: Adjusting for the effect of AI
The 2030 Thematic Roadmap identifies 150 trends across six thematic paradigms, plotting each trend based on its potential impact to society using an ‘impact’ vs. ‘likelihood’ methodology. To supplement this methodology, our analysts employ a wide range of thematic datasets, from patents and M&A-related data, to hiring and private funding information.
Many of this decade’s mega-trends, including demographic change, digitalisation and decarbonisation, are still reflected in this year’s roadmap. However, our Research analysts have also identified ten new trends this year, across six broad paradigms: Technology & Financials, Consumer, Food & Retail, Industrials, Manufacturing & Transportation, Healthcare & Modern Science, Energy & Environment, and Society & Culture.
🔬🌐 Peter Schiff’s Euro Pacific Asset Management had this piece: Recent Misses in the Luxury Sector: Inflation’s Growing Impact - The luxury goods sector has long been a bellwether for economic health and consumer confidence. In recent months, however, several high-profile luxury brands have reported disappointing sales and earnings, raising concerns about the broader economic implications. This article examines the recent performance misses by leading luxury brands such as LVMH Moët Hennessy Louis Vuitton (EPA: MC / OTCMKTS: LVMUY / LVMHF), Burberry (LON: BRBY / FRA: BB2 / OTCMKTS: BURBY / BBRYF), and Kering SA (EPA: KER / OTCMKTS: PPRUF), linking these outcomes to the rising tide of inflation. We argue that despite a momentary slowdown in the Consumer Price Index (CPI), inflationary pressures are likely to persist, potentially continuing to erode demand for luxury goods. Furthermore, in such an inflationary environment, investors might consider rotating into quality, value-oriented stocks and commodities to safeguard their portfolios.
🔬🌍 This Lazard piece mentioned a number of European stocks - many derive revenue from EMs and might interest readers not familiar with European stocks: Europe’s Stock Markets: Challenging Misperceptions
🎙️🌐...Let’s Talk Data Centers with Jim Footh (PGIM - Speaking of Alternatives) 22:31 Minutes - Jim Footh, Managing Director, Data Center Investments & Portfolio Management at PGIM real estate, discusses the fast-growing investment potential of data centers, and how AI is further fueling this trend.
Platinum Asset Management had these non-EM focused pieces:
🔬🌐 This piece also covered LVMH Moët Hennessy Louis Vuitton (EPA: MC / OTCMKTS: LVMUY / LVMHF): A lap of luxury - Luxury goods are expensive and beautiful. And the companies that make them can be good investments.
🔬🇩🇰 "Professionals study logistics" - how one Danish company is moving the world - In April 2024, Platinum bought into Danish logistics company Dsv A/S (CPH: DSV / FRA: DS81 / OTCMKTS: DSDVF), believing it was attractively priced, a prime beneficiary of the forces mentioned above and had a future runway of growth.
🏫🔬🌐 This is a useful short checklist: Five great short stories - Our short strategy is relatively straightforward. We look to short weak companies run by underperforming management. Companies that typically attract our attention include those with:
weak market positions in “winner-takes-most” markets
declining sales and weak balance sheets
aggressive accounting practices
overly promotional management teams
aggressive insider sales.
🔬🌐 Robecco had this piece noting the lagging performance of certain MNC brands like Nike (NYSE: NKE) and Starbucks Corp (NASDAQ: SBUX) versus more localized ones: The rise of local brands
Local brands with more resilient supply chains and distinctive consumer propositions are disrupting multiple consumer segments.
Global supply chain complexity favors local brands over global rivals
Locally sourced products tend to resonate with local culture and values
Changing consumer preferences are underpinning this trend
New Asia Fund Documents & Research
🔬🇰🇷 🇹🇼 This AllianceBernstein piece covered Korea based SK Hynix (KRX: 000660) and Samsung Electronics (KRX: 005930 / LON: BC94 / FRA: SSUN / OTCMKTS: SSNLF) and Taiwanese wafer probing, final product test and assembly service provider King Yuan Electronics (TPE: 2449) and printed circuit board manufacturer Unimicron Technology Corp (TPE: 3037): Is AI a New Engine for Emerging-Market Equity Investors? - There’s more to artificial intelligence (AI) than the US tech giants. Equity investors can find overlooked opportunities in emerging-market companies.
abrdn had these stock focused pieces: