Mawer President and portfolio manager, Jim Hall, discusses the current market environment and the team's approach to risk management. The conversation covers what triggered the vast volatility and uncertainty seen in markets, potential scenarios to come, and what the team at Mawer is doing about it. He emphasizes the importance of staying calm, being prepared, and diversifying portfolios to manage risks.

Host: Andrew Johnson, CFA, Institutional Portfolio Manager

Guest: Jim Hall, CFA, MBA, President, Portfolio Manager

This episode is available for download anywhere you get your podcasts.

Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.

Visit Mawer at https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

In this episode, U.S. mid cap equity portfolio manager, Jeff Mo, discusses the market's sharp sell-off following President Trump's announcement of widespread tariffs on nearly all U.S. trading partners. He provides both short and long-term perspectives on potential economic impacts, including reduced business investment and consumer spending, while explaining that Mawer's investment approach during this volatility remains focused on preparation as opposed to prediction.

Key Takeaways:

• "Liberation Day" Tariffs - Trump administration announced widespread tariffs (10-40%) on most trading partners, surprising markets with their scope and scale.
• Market & Economic Response - S&P 500 dropped nearly 5% in one day with bond yields falling; concerns about negative impacts on global growth, business investment, and supply chains
• Consumer Sentiment Impact - Potential weakening of consumer spending due to market losses ("wealth effect") and general uncertainty affecting household financial decisions
• Investment Strategy in Volatility - Mawer's investment approach focuses on preparation over prediction, maintaining a portfolio of quality companies while making only marginal adjustments during market turbulence

Host: Andrew Johnson, CFA, Mawer Institutional Portfolio Manager

Guest: Jeff Mo, CFA, Mawer Portfolio Manager

For more details and full transcript visit: https://mawer.com/the-art-of-boring/podcast

This episode is available for download anywhere you get your podcasts.

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Founded in 1974, Mawer is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore. Visit Mawer at https://www.mawer.com.

Follow us on social:

LinkedIn - https://www.instagram.com/mawerinvestmentmanagement/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/

In this episode, we discuss the early months of the new U.S. administration with Grayson Witcher, lead portfolio manager for the U.S. equity strategy at Mawer. Grayson touches on the impact of tariffs, including the practical and unpredictable aspects of tariffs and how they influence decision-making. Grayson also shares insights on the potential long-term effects of the AI boom and highlights recent portfolio adjustments in response to evolving market dynamics.

Key Takeaways:

• The market initially surged post-election but has since reversed, with the S&P 500 dropping below election day levels. Policy shifts have hit sectors like pharma, defense, and life sciences. Volatility is rising, inflation concerns persist, and consumer caution is growing. [00:01:34]
• The current investment approach focuses on avoiding industries most exposed to tariffs, such as autos, agriculture, and luxury exports. Short-term risks include inflation and declining consumer confidence, while long-term consequences are harder to predict. Tariffs may push foreign competitors to innovate and expand globally. [00:07:01]
• When thinking about the impact of AI on the market, the U.S. equity team focuses on identifying at-risk industries and long-term beneficiaries. Instead of betting on specific AI technologies, they invest in broader themes. [00:15:45]
• While the portfolio remains largely stable, they have made minor changes due to advances in AI and current market volatility, exiting companies due to the anticipated impact AI will have on them. [00:17:33]

As global tensions rise and deglobalization trends continue, demand for enhanced border security and cargo inspection is increasing. A recent portfolio addition is OSI Systems, a security screening company specializing in cargo, airport, and venue security. [00:21:25]

Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.

Visit Mawer at https://www.mawer.com.

Follow us on social: LinkedIn - https://www.linkedin.com/company/mawer-investment-management/

Instagram - https://www.instagram.com/mawerinvestmentmanagement/