Jake Reynolds, Asset Management Director, explains how Courtiers and the Investment Team navigated the markets in 2024, as well as how one investment paid back five times earnings.
“It’s been a fascinating year. It’s had some really interesting challenges but loads of exciting opportunities as well.” – Jake Reynolds, Asset Management Director
The Magnificent Seven and the S&P 500
Beginning in the USA with the ‘Magnificent 7’, Jake notes that tech stocks are pushing the S&P 500 to historically high valuations. To manage risk, we’ve shifted some exposure to the S&P 500 equal-weighted index and smaller companies, both expected to perform better in the long run.
“[The Magnificent 7] have pushed the S&P 500, the 500 largest companies in the US, to a valuation that is more expensive than 98% of history going back to 1881.” – Jake Reynolds, Asset Management Director
Unipol Gruppo
Jake covered Courtiers’ investment in Unipol Gruppo, an Italian insurer, which performed well in the team’s stock analysis process based on strong earnings, dividends, cash flow, leverage, and margins. This investment normalised to fair value quickly, increasing by over 100% in the last week.
MPC Container Ships
“Now Unipol Gruppo was a bit of a no brainer, but the model isn’t always necessarily right immediately.” – Jake Reynolds, Asset Management Director
He also highlighted MPC Container Ships, a Norwegian company that benefited from elevated shipping prices and strategic decisions like paying down debt and revamping ships. This investment had returned 60% and over 100% when dividends were included. MPC Containers remained a strong performer due to ongoing elevated shipping prices.
Barclays
Jake concluded by revisiting their investment in Barclays, initially purchased in 2022 for its significant undervaluation. Barclays normalised and became a top performer in their portfolios. Despite this normalisation, Barclays still offered attractive value, remaining a key holding.
Investment Strategy
Throughout the year, Jake emphasised the importance of diversification and patience in their investment strategy. This approach allowed Courtiers to seize opportunities in undervalued markets and sustain strong returns, even amid market volatility. Overall, 2024 was a year of navigating challenges, capitalising on opportunities, and reinforcing long-term strategies for portfolio growth. Jake’s presentation underscored the value of prudent, diversified investment approaches in achieving consistent, positive outcomes for investors.
Want more Client Seminar summaries?
We hope you enjoyed this Client Seminar summary. If you would like to read and watch more, James Timpson, Head of Asset Management, talks about Markets and Courtiers Funds in Coming Up Trumps: A Review of Markets in 2024 and Gary Reynolds, Chief Investment Officer, discusses economic policy and Government Debt in The Good, The Bad and the Not so Ugly
We also sat down with Gary Reynolds to answer your questions from the Client Seminar, which we will share with you soon!
If you have any questions or would like to know when we will run the Client Seminars again, please don’t hesitate to contact your Courtiers Financial Adviser or get in touch through the Contact Us page.
