Hyperion: There’s a real opportunity at the moment
Tim Samway, Managing Director at Hyperion Asset Management, says that a focus on macro themes has created a real opportunity in a number of high-quality companies. “It’s very easy to take your eye off the ball, and that is the bottom-up approach of which companies are doing well over the next five years.” Samway says the rotation to resources and ‘value’ stocks has been swift resulting in a one-off rerating of these companies. However, he questions their ability to continually deliver earnings growth over time “One thing we’ve noticed in 20 years of investing is that these rotations unwind quickly and they unwind very strongly. Businesses that continue to deliver EPS growth year after year who are devalued during these rotations periods actually rebound very strongly when the market wakes up.” In this video, he highlights two companies that he believes have been unduly sold off in the current rotation.
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