“More than 90% of our holdings remain below their peak earnings. This points to under-utilised assets and the potential for further earnings improvement or recovery”
In his latest Letter to Shareholders, Jens Moestrup Rasmussen, Head of Sparinvest’s Value Equities team looks at how the introduction of a new Index in Japan is forcing companies to focus on greater capital efficiency and ROE delivery. He also considers whether stock market highs are justifiable or not and at how secular tailwinds and cyclical potential are strong arguments in favour of value investments as the recovery gains traction.
Read the Letter to Shareholders here.