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Investment Managers Outline Top Stock Picks
Amanda Cheesley
21 June 2022
Up against a volatile market, global investment managers analyzed quality-growth opportunities at London’s Investor Conference this month, and highlighted their top stock picks. The bank has €44.8 billion ($47 billion) of assets under management, with a strong presence in Hamburg, Frankfurt and New York. The firm is also on track to deliver its 2025 plan of doubling revenue and expanding margins, he stressed. The firm, which is an investment management company based in the US, also invests in Amazon and Microsoft.
Berenberg
Martin Hermann is a portfolio manager of the Global Focus Fund at private bank . He selects stocks that are undervalued relative to their earnings development in the next three to five years, and which have a positive earnings' power due to stronger growth or margin increase. They are also hard to replicate, with high quality characteristics, and high barriers to entry, he added. He favours the biopharma space, saying that his top stock pick is New York-based Royalty Pharma, which is the largest buyer of biopharma royalities.
It has a diversified portfolio of innovative drugs to treat a variety of diseases including cancer, he explained. It is a listed fund which generates very high margins, is growing structurally, and is driven by an aging population and innovation in biopharma, he added.
J Stern & Co
investment committee, sits on SGA’s executive board. Surprisingly, his top stock pick is Mengniu Dairy, a leading manufacturer of branded dairy products in China. It has roughly a 25 per cent market share in the Chinese dairy industry and has been gaining shares, with 18 per cent compound three-year forecast growth in earnings, he said.
He pointed out that dairy is a consumer staple in China, which is fast becoming a part of people’s diets, especially in top cities in China. Dairy pricing has also consistently outperformed inflation despite fluctuations in raw milk prices, partly driven by premiumization with Chinese consumers willing to pay for quality products, he added. Management consequently expects 15 per cent compound annual growth rates through 2025, he said, driven by pricing and mix upgrade, underlying industry consumption growth, and market share gains.