Finding Alpha

A topic front of mind for every investor at the moment is the potential impact of tariffs on the global economy. The Trump administration in the US has imposed tariffs on specific countries including Canada, Mexico and China, tariffs on specific industries including cars, steel and aluminium, culminating in the announcement of 'reciprocal tariffs' on goods imports from nearly every country in the world, which have since been delayed. In this podcast, Challenger's Chief Economist, Jonathan Kearns, discusses the likelihood these tariffs will be enacted, and the implications for the US, Australian and world economy with Fidante Investment Specialist, James Clark.

How have gaps in the commercial real estate (CRE) lending market created new opportunities for non-bank lenders? We sit down with CRE expert Gerard Hargraves, Head of Real Estate Lending at Challenger Investment Management (CIM) to uncover the evolution of CRE - from the impacts of the Global Financial Crisis to today’s “higher for longer” environment and how to spot red flags in this dynamic asset class. Tune in now to learn where CRE is today and its outlook in the backdrop of the current turbulence.

Explore the unique dynamics of the credit market with Dylan Bourke from Kapstream Capital. In this episode, Dylan discusses where Kapstream is finding relative value in today’s market environment, why Aussie credit spreads are attractive right now, the impacts the ‘inflationary fellow’ may trigger, and capitalising on a decade-high yield environment.

With geopolitical risks and deglobalisation increasing, investment opportunities are emerging beyond renewables and traditional green solutions. New technologies in automation, digitisation, food production and the circular economy are providing new solutions to not only benefit the environment but also provide positive economic benefits. In this episode, David Winborne from Impax Asset Management shares his insights on the latest compelling technologies and innovations as well as his view on the impact of a new political paradigm.

Between the unwinding of the Yen carry trade, the first interest rate hikes since 2007 and a new prime minister, the Japanese market changed dramatically in 2024.  After attracting attention and flows from foreign investors in recent years, Japan is back on investors’ radar.

In this episode, Yuichi Murao, CIO of Nomura Asset Management shares his views on the Japanese equity market in a year of change for the world’s fourth largest economy.

Despite concerns about the impact of higher interest rates and the health of the Australian consumer, August’s earnings season was broadly in line with expectations. However, that doesn’t mean that it wasn’t full of surprises. Outlook statements were worse; leading to earnings downgrades and a continuation of low earnings growth in Australia. In this episode, Andrew Martin from Alphinity Investment Management unpacks reporting season and shares his insights on where he is finding stocks that have their own growth drivers and are not dependent on lower interest rates nor a resurgence of growth in China.

Rising interest rates, construction costs, labour costs and hybrid working.  It’s been a challenging environment for real estate over the last few years. Yet performance moves in cycles and green shoots abound.  Particularly for existing stock in quality locations purchased at attractive valuations. Elanor’s Head of Investments, David Burgess, joins Finding Alpha to share the geographies, sectors and assets that are looking compelling as well as the alternative investments on their radar.

Private credit is attracting a lot of attention. A combination of higher base rates, a credit margin, and an illiquidity premium are appealing to investors looking for income. This demand is being met by private credit as an increasing amount of lending activity is taken away from banks, increasing the supply of deals looking for financing. Challenger Investment Management has been investing in this market for almost 20 years and has lived through credit cycles, including the GFC.

In this episode, Portfolio Manager Justin Voller from Challenger Investment Management unpacks the private credit opportunity, and the red flags investors should look out for.

Fears over China’s property market and slowing growth has led many to avoid allocating to the world’s second largest economy.  This has created a compelling valuation gap that Ox Capital’s Dr Joseph Lai thinks is ripe with opportunities.  In this episode, Jo talks about the global franchises that are attractive right now and why he thinks that China’s equity market is flashing green.

The Magnificent 7 dominated US equity market returns in 2023 but while some continue to thrive, others have experienced negative returns this year.  We talk to Alphinity Investment Management’s Jeff Thompson about which of the tech giants still represent good value, where the next AI winners will come from and where he is seeing opportunities in other sectors.  We also discuss the other themes that investors should consider having in their portfolios and what is driving the pickup in M&A activity.  As investors question whether the dominance of US equity markets can continue, this is an episode not to be missed.