Screen test: choosing what companies to invest in

Livewire Exclusive

Livewire Markets

Fund managers tend to stick to their tried and true methods for choosing companies to invest in, whether that includes their size, levels of risk, growth prospects or return on capital. But as the current pandemic turns the world upside down, is it also influencing the way companies are now being screened?

In this video, Bob Desmond, Head of International Equities at Claremont Global, says when it comes to choosing companies for his fund, his strategy remains largely the same, apart from now drilling down deeper. He highlights the importance for these times of choosing businesses that have a strong balance sheet and high margins.

Bob adds what COVID has shown is the “importance of having a simple process that’s easy to execute under pressure”.

 

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Claremont Global is a high conviction portfolio of value-creating businesses at reasonable prices. They consider ourselves true stock-pickers and look to avoid owning businesses that depend on a benign or favourable economic environment. To learn more, use the contact button below.

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