What returns have you had to date?
Anglo American has been undergoing thorough corporate streamlining which is progressing well, and Cynthia Carroll is proving to be very effective in getting the firm leaner and more focused. They have a superb basket of assets that I think are well-positioned for the company looking forward, as the world migrates from traditional developed markets to the emerging markets.
Being a construction firm, Aveng has been under severe pressure as the industry experiences sluggish activity following the glory days of the mid-noughties, not to mention the competition commission cloud that has been hanging over the sector’s head. I’m confident that the company is capable of weathering the storm, and they also have been strategically building their business outside of South Africa, to capture some of the African growth that is occurring.
Metair was available to be bought at attractive levels given its involvement in the motor industry, which came under pressure during the financial crisis. Not only has it grown earnings by more than 40% over the past year, but it’s a healthy dividend payer and still remains on very attractive multiples. The stock has a balance sheet underpinning the land it owns, and has made some good inroads into non-motor sectors, such as supplying batteries to mines to avoid down-time when power supply is interrupted.
The investment philosophy that I share with Cannon Asset Managers is that investing is not a short-term project, and that the return you make from a share is dictated by the price you pay for it. With this in mind, I have selected well-priced stocks that have measurable underlying quality.
Who is Andrew Newell
After beginning his financial career at a large listed investment firm, Andrew joined Cannon Asset Managers in 2004, initially helping to build its private client and retail investment offering, and more recently, looking after institutional clients that include multi-managers, pension funds, corporate investors and trusts. As a specialist investment firm, Cannon Asset Managers is clear about its view on the world of investments, and that there are clear rules to long-term wealth generation. Most importantly, the adoption of the old-fashioned value philosophy and sticking to it is of paramount importance.
Andrew’s portfolio of equity investments
The current market environment demands attention to stocks that offer both an attractive price, and sound financial and management quality. Accordingly, some of his positions include Anglo American, Metair and Aveng. In all cases, the firms are financially robust, with strong balance sheets, attractive dividend records, and management teams that are sound. Importantly, the stocks are well-priced, meaning that you are not overpaying for these attributes.