Fund Team: Industrials Update

Carl Meran, Industrials Sector Leader 2015-16

The idea to go long on oil has not paid off yet and it is not clear yet that a bottom has been reached. I believe the idea to short Tesla should still be right as an idea, however the trade has been helped by the general sell off that occurred this January.

This year my plan is to profit from the high volatility and the unsecure market sentiment leading to potentially undervalued companies. I have urged my team to look into European manufacturers and companies that could come out of this crisis stronger, or those that might profit from low commodity prices. I believe that companies like Agrana (an Austrian Industrial company manufacturing sugar and starch) could be one such investment.

However, due to the high insecurity about global growth and to what comes after QE, I will also look into companies that have enjoyed high expectations by investors and might now not hold up to them – this way we could profit from an economic downturn and hedge some of the other bets. For example, we have been looking into various companies producing parts for Wind Turbines and Solar Power Stations.

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