Semiconductors, GLP-1s, and Defense Companies: Powering the International Equity Strategy | EP167

In this episode, Peter Lampert, lead portfolio manager of the International Equity Strategy, provides insights on the team's investment process, the state of the portfolio, and the main drivers that are currently having an outsized impact on performance, namely, semiconductors, obesity medicines, and defense companies. He details his team's rigorous approach to evaluating management teams from both a quantitative and qualitative standpoint, providing an in-depth example of Hitachi. The conversation concludes with a brief discussion of the current macro environment.

Key Takeaways:

• As enthusiasm surrounding artificial intelligence continues to grow, semiconductor companies have strong competitive advantages and dominant market share in their niche industries.
• According to the team's DCF model, the long-term growth rates of companies like TSCM have increased, so they have trimmed back some positions to manage risks.
• With Novo Nordisk leading the way, the growing market for obesity drugs is expected to become the largest therapeutic drug class as more and more companies look to enter the space.
• Amid ongoing geopolitical conflicts, there is a strong long-term investment case for select European defense companies, as European governments increase defense spending to protect Western values.
• Regarding areas of opportunity, Peter highlighted the theme of improved corporate governance in Japan as companies in the country aim to meet global standards.
• When evaluating a company's management team from a qualitative perspective, there are four defining elements: Strategy, operational excellence, capital allocation, and trustworthiness.

Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager
Guest: Peter Lampert, CFA, Mawer Portfolio Manager

This episode is available for download anywhere you get your podcasts.

Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. 

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