Hosking Partners

We enjoyed this month’s 'Best Paperbacks' article in The Guardian, which featured Ed Conway’s book titled 'Material World'. Ed's book explains how society’s prosperity is built on a hidden world of energy and capital intensive materials.   At Hosking Partners, our Capital Cycle approach informs our view of this hidden, material world.    Last year, we were fortunate to be joined by Ed on our inaugural episode of the Capital Cyclist Podcast, where Ed and Hosking Partners Portfolio Manager Django Davidson discussed supply-side investing, ESG, Chinese industrial policy, global supply chains and more.   You can listen to the full podcast with Ed Conway here: https://lnkd.in/e9AhS-Md   For the full The Guardian article, please see here: https://lnkd.in/eM5qinPW   🔗 For more Hosking Partners insights ‘Follow’, and see here: https://lnkd.in/exHxqfud

In our latest Active Ownership Report, Head of ESG Roman Cassini discusses the importance of climate reporting and introduces our first review under #TCFD’s framework. The report also includes a breakdown of our Q2 proxy voting and corporate engagement case studies. The article is available to read and download here: https://lnkd.in/egSywnQH 🔗 For more Hosking Partners insights ‘Follow’, and see here: https://lnkd.in/exHxqfud

“It’s only when the tide goes out you discover who’s been swimming naked.” – Charlie Munger 🎌 In our most recent Hosking Post, our Founder, Jeremy Hosking, discusses potential causes of the volatility in Japan and why we believe these shocks only advance the investment case for the region. The Article outlines the four types of investors in the Japanese stock market and revisits the long-term case for Japanese management teams to add value by monetising non-core assets and buying back heavily discounted shares. The Article is available to read and download here: https://lnkd.in/e7mSgikX 🔗 For more insights from Hosking Partners, including our February piece titled ‘The Opportunity in Japan’, please see here: https://lnkd.in/exHxqfud

⏰ Hosking Partners enjoyed Lyrical Asset Management's 'Warning Signs' Article last week, which provided evidence to suggest a sustained period of mega-cap underperformance may soon be upon us. 📉 The S&P 500 outperformed the S&P 500 Equal Weight (EW) last quarter by a near-record 7%. Historically, such outperformance has led to S&P 500 underperformance against S&P 500 EW in all subsequent 3- and 5-year periods. 📈 Perhaps even more interestingly, the article states that value stocks (the cheapest quintile of the top 1000 US stocks) have even more meaningfully outperformed the S&P 500 and the S&P 500 EW in the subsequent 3- and 5-years. ⚠️ Whilst this might be a ‘warning sign’ for mega-cap stocks, we see a compelling Capital Cycle opportunity. You can find the full article here: https://lnkd.in/eF-kG5bE 🔗 For more Hosking Partners insights ‘Follow’, and see here: https://lnkd.in/exHxqfud

🎙️We had the pleasure of hosting Django Davidson, Founding Partner at Hosking Partners on the pod to explore the famous 'Capital Cycle' as decision making framework for investing and life ➡ For the uninitiated, the Capital Cycle is an expression of raw industrial economics on one side, and a behavioral framework on the other. 🎞   In this conversation, my co-Host Juan Torres and I discuss:   - Hosking Partners beginnings in a Georgian Townhouse in Dublin 🏠 - Why if you have this contrarian brain chemistry, you need some guardrails. The capital cycle framework provides that, otherwise you are just a difficult person! 🧠 - What the Capital Cycle is telling investors today 🔄 - More concentrated portfolios ≠ better 📊 - The importance of finding long-term institutional capital 🏦 - Why client relationships are so crucial 🤝   Also listen to find out what the capital cycle would tell a mid-career Private Equity partner to do?* 🤔   *SPOILER: get out of PE and into Deep Value investing!   Search for The Value Perspective wherever you get your podcasts to enjoy this fascinating conversation! https://lnkd.in/eKUVztPZ https://lnkd.in/eZZ_sWzb #Valueinvesting #Schroders #decisionmaking #capitalcycle #TVP #podcast

Hosking Partners would like to celebrate Fufu (Fiona) Chen and the great work she has done with us during her 6-week internship with the firm. Throughout her time with Hosking Partners, Fufu worked on several single stock pitches, focusing on China and Hong Kong small and midcap listed companies. During this research, she utilised her investment skills and knowledge of the Chinese market to further understand the behaviour of management teams, an essential part of our Capital Cycle analysis. Thank you for joining us Fufu (Fiona) Chen and we wish you continued success for the future! An additional thank you to GAIN UK for continuously providing an excellent pool of female investment talent, and we look forward to welcoming another GAIN UK intern next year.

Thanks to Sean Peche for your brilliant feedback on the latest Schroders Value Perspective podcast, featuring Hosking Partners Portfolio Manager, Django Davidson. At Hosking Partners we live and breathe the Capital Cycle, and this podcast is a great introduction to our philosophy. If you would like any further information, please reach out directly. 🔗 For more Hosking Partners insights ‘Follow’, and see here: https://lnkd.in/exHxqfud

Hosking Partners are delighted to remain accredited signatories of the Financial Reporting Council’s UK Stewardship Code, comprised of 287 signatories representing £50.1 trillion in AUM.   This will be the third year we have met the expected standard of reporting, and as a firm we see stewardship, active ownership, and engagement with investee companies to be a fundamental part of our investment process that has delivered superior long-term results for clients.   These key tenants of our fiduciary responsibility also help us better understand the world in which we invest and inform the decisions we make.   The full statement of compliance is on our insights page below which also includes further articles on copper, offshore wind, shipping, and Japan: https://lnkd.in/epfxgpQ9

Hosking Partners Portfolio Manager, Django Davidson joined Juan Torres and Andrew Williams for this week’s episode of 'The Value Perspective' by Schroders. During the episode, they cover the 'Famous Capital Cycle' (Juan's words, not ours!) as a framework for human biases and decision making, as well as a lens to uncover compelling investment opportunities ranging from Japanese small and mid-caps to platinum-group metals and French spirit companies. The episode is a fantastic introduction to our investment philosophy, and can be found on Apple Music, Spotify and our website here: https://lnkd.in/dgchwW7j 🔗 For more Hosking Partners insights ‘Follow’, and see here: https://lnkd.in/exHxqfud

Yesterday, Hosking Partners’ Roman Cassini attended AIMA - The Alternative Investment Management Association's #PuttingESGintoPractice conference, alongside two of the firm’s Summer interns, Sam Clapp and Hana Terauchi. The conference highlighted growing scepticism towards the old paradigm of ESG investing (‘ESG 1.0’) and emphasised the need for ‘ESG 2.0’ to focus on real-world effect – either via #impact or #returns – rather than getting bogged down in reporting for reporting’s sake. Nonetheless, #transparency will remain critical to help keep investors informed, and there was much discussion of how regulators can best drive high-quality, honest reporting rather than inadvertently incentivising greenwashing. These are important issues to which we have dedicated much thought over recent years. If you are interested in learning more about our views on the evolving ESG paradigm, we recommend the below written piece and the #CapitalCyclists podcast with Tom Gosling: Written piece: https://lnkd.in/eR3q7xez Podcast: https://lnkd.in/dfUswSfQ We would like to thank AIMA - The Alternative Investment Management Association for hosting such an interesting series of talks – even managing to squeeze in a talk on the talent pathway into asset management, which proved particularly useful and relevant for our interns Sam and Hana!