Seven Black Friday bargains
By Sonia Rach, 24 Nov 17
Consumers in the UK and globally will seek out bargains on Black Friday, but what about the investment world? Here are the views of seven managers and areas in the market that they see as undervalued.
Gary Greenberg, head of emerging markets at Hermes Investment Management believes the ever-growing Chinese market as an innovative hub to invest in.
He said: “For those of us in the West who grew up with the epithet ‘Made in China’ as shorthand for a cheap facsimile of the real thing, the concept of China as a hub of innovation is a challenging one.
“However, with government funding for research ramping up and patent awards rapidly outpacing the rest of the world, the facts do not lie.
“One such innovator is Alibaba. From its origins 18 years ago, it has grown to become the world’s largest retailer, while diversifying into media creation and cloud computing. Often described as the Asian Amazon, the company’s business model also replicates that of eBay.
“The business is reputed to generate more gross merchandise value than eBay and Amazon combined. Most businesses today follow the so-called 80/20 rule, where 80% of revenues come from 20% of clients. Alibaba wants to turn this model on its head, serving the 80% of people who do not have access to the global marketplace for 20% of the profit. By harnessing big data, this approach can make sense.”
Tags: Antipodes Partners | Ashburton | Cohen & Steers | Edentree | Federated Hermes
