Silvia Amaro of CNBC and Sean Peche of Ranmore Fund Management
After the Federal Reserve cut interest rates by 50 basis points, investors have been left wondering whether growth or value stocks are the better bet.
On CNBC’s upcoming Pro Talks, Silvia Amaro will ask value investor Sean Peche where he sees opportunities in the current market.
Peche is a portfolio manager at UK-based Ranmore Fund Management managing $329 million Ranmore Global Equity Fund. The fund, launched in 2008, seeks to identify mispriced stocks — or those that are selling for less than their underlying value.
“An important part of our process is avoiding overvalued businesses. Investors often get caught up in the excitement of a fast-growing business. Over time they begin to justify paying any price for that growth,” he said. “That’s something we’re very happy to walk away from, even if it means losing potential short-term gains.”
Peche will discuss which sectors and geographies investors should be watching right now, along with his favorite stocks. It will also be asked whether value investing is at an inflection point given rate cuts by central banks around the world.
Ranmore Global Equity Fund’s top sectors include consumer discretionary (24%), financials (22%) and industrials (10%). Only 3% of capital is in technology and 6% in communications. Its largest holdings are in the French supermarket chain Carrefourpetroleum company PetrobrasChina’s tech giants Alibaba and Baiduand the Dutch bank ABN Amro.
As of August 31, the Ranmore Global Equity Fund has returned 21.6% over the past year, underperforming the 24.4% benchmark MSCI World Index. Since inception, the fund has gained 10.9% annually, slightly more than the 10.6% posted by its MSCI benchmark.
Peche founded Ranmore Fund Management in 2008, prior to which he worked as co-manager of a US/European hedge fund at London-based Decillion Fund Management and as an equity analyst at Orbis Investment Advisory.
CNBC Pro subscribers can watch Pro Talks live Wednesday, September 25 at 7am. ET / 12 p.m. BST / 7pm Sgt.
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