Mirabaud AM’s Daniel Tubbs names five favoured stocks
Mirabaud Asset Management’s Daniel Tubbs, who joined the firm from BlackRock earlier this year from his position as co-head of emerging markets, has picked out five key stocks he feels represents the best opportunity for growth at a reasonable price.
Mirabaud launched a Global Emerging Markets fund for Tubbs (pictured) in the summer, investing in growth companies with high barriers to entry, strong cashflows, and sustainable earnings. Here is his selection of three Chinese and two Russian stocks offering growth at a reasonable price.
This Chinese computer company is growing through acquisitions, it has bought a company in Brazil, which is a huge growth market. It is geared into other growth markets like tablets and smartphones, and has a good market share in China. Half the company’s market cap is in cash so I could make more acquisitions or pay a dividend in future
2. Sands China
The Macau gaming space has regulatory tailwinds because the government wants the industry to grow – it generates a large amount of tax revenue from casinos. The authorities are trying to improve access through a high speed rail network and by improving airports.
3. Kunlun Energy
This is unusual because it is a green play. Pollution in China is horrific, and this company is trying to do something about it. It produces liquefied natural gas, which is cleaner and cheaper than diesel or gasoline. Buses can be converted to reduce emissions, and China is showing some signs of progress in that. The firm is getting support from parent company Petrochina. The goals of the company management are aligned with minority shareholders. Usually companies are incentivised to maximise employment because the government fears unrest more than anything.
This is the dominant bank in Russia with 20,000 branches. It has 50% of the deposit base and is growing its loan book into double digits. It has a 5%-6% net margin, which is attractive.
This is a railroad operator which transports cargo. It is consolidating in a fragmented industry, buying up other operators. It is a good way to play resources and materials without being too exposed to any one commodity.
This article was first published on Investment Week