Investment themes and opportunities for 2020

As we look forward to 2020 after a year of significant returns across our equity and credit investments, we find ourselves in a similar constructive frame of mind as last year.
In the following, our investment team offers our views on some of the issues we see and how they may impact our investments.
As last year, from an equity perspective, we believe there are many drivers that should lead our companies to do well, both from a cyclical and secular perspective. We think there are significant opportunities in fintech with the large digital platforms launching new products and the existing payment providers benefitting from increased usage. In luxury, LMVH, the global leader, was our best performing stock this year and is going from strength to strength. Finally, in industrials we see strong growth from structural opportunities and cyclical reacceleration, not to mention from markets if Benjamin Graham-type value stocks come back into favour.
From a credit perspective, we are expecting another good year albeit constrained by credit spreads that have compressed over the past year. We hope to use the inevitable volatility in emerging markets to our advantage and remain vigilant given the number of political risks on the horizon for emerging markets in 2020.
By sticking to what we know, identifying global companies that have strong fundamentals and attractive valuations and keeping a long-term perspective, we expect our investments to be resilient and to continue to take advantage of market movements

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