Writing about High Quality Companies, Enlightened Capital

Enlightened Capital

Writing about High Quality Companies

I have more than 8 years of investing experience across Equities and Fixed Income (Investment Grade/High Yield). I have largely focused on Financials, Energy, and Utilities professionally, but I am interested in exploring new sectors to find attractive opportunities. Right now, the Payments sector is occupying much of my time.

Equity Bottom-Up

AON announced its acquisition of WLTW in early 2020, and the merger was set to close in 2H21, before the DOJ stepped in to block the deal. Shortly afterwards, AON and WLTW terminated their merger agreement, setting the stage for WLTW to turn around its business as a stand-alone company.

AON announced its acquisition of WLTW in early 2020, and the merger was set to close in 2H21, before the DOJ stepped in to block the deal. Shortly afterwards, AON and WLTW terminated their merger agreement, setting the stage for WLTW to turn around its business as a stand-alone company.

WLTW: A turnaround story or the continuation of prior challenges?

Alpha-Centric ESG Research

Kyle Rudden

Two days ago the U.K. Financial Reporting Council announced 125 successful signatories (aka "not greenwashers") to the revised U.K. Stewardship Code. Signatories are integrating stewardship and ESG (Environmental, Social, Governance) factors into investment decisions, to high standards.Whilst this is ostensibly limited to U.K. pension assets, ramifications are more far-reaching than it might at first appear (one indication is the number of North American and Asia Pacific signatories, in addition to the expected European names). More specifically, the broad relevance is because it:<ul>
<li>Affects firms doing business with U.K. asset managers/owners not just the managers/owners.</li>
<li>Is a quasi-blueprint for similar anti-greenwashing initiatives taking root in the U.S. and Asia.</li>
<li>Greenwashing is having an increasing impact on stocks prices (e.g., DWS Group last month).</li>
</ul>This is one battle in an emerging global war on greenwashing. The U.S. SEC has its own agenda to fight greenwashing and Asia isn't far behind (e.g., regulators in Japan stepping up scrutiny). There is more to come, and a lot to learn from this including who is (and is not) on the signatory list.

Two days ago the U.K. Financial Reporting Council announced 125 successful signatories (aka "not greenwashers") to the revised U.K. Stewardship Code. Signatories are integrating stewardship and ESG (Environmental, Social, Governance) factors into investment decisions, to high standards.Whilst this is ostensibly limited to U.K. pension assets, ramifications are more far-reaching than it might at first appear (one indication is the number of North American and Asia Pacific signatories, in addition to the expected European names). More specifically, the broad relevance is because it:
Affects firms doing business with U.K. asset managers/owners not just the managers/owners.
Is a quasi-blueprint for similar anti-greenwashing initiatives taking root in the U.S. and Asia.
Greenwashing is having an increasing impact on stocks prices (e.g., DWS Group last month).
This is one battle in an emerging global war on greenwashing. The U.S. SEC has its own agenda to fight greenwashing and Asia isn't far behind (e.g., regulators in Japan stepping up scrutiny). There is more to come, and a lot to learn from this including who is (and is not) on the signatory list.

The War on Greenwashing: UK Stewardship Code "Successful Signatories" Has Broader Implications

Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

This topic has nagged me for some time. Two months ago when the Case-Shiller Home Price Index “made a new high” and after new highs again this week, I’ve been doing back of the envelope calculations based on my property portfolio to show how screwed tracking prices in property investments can be.I believe such coverage of property price performance is wholly misleading and misrepresents real returns for investors and home buyers.A  home and a home price  that was transacted even 10 years ago was a substantially different home to today’s home. A recognized stock price (not DRYS!)  over 10 years has a much better chance of reflecting price movements that correspond to positive and negative returns to the investor directly.The distortion in property prices comes from a slew of adjustments we need to make, and which can shave several percent off a value per year! I’ve used my own property transaction data to work out the adjustments that should be made. There are two main categories which need to be made (with many sub-categories).

This topic has nagged me for some time. Two months ago when the Case-Shiller Home Price Index “made a new high” and after new highs again this week, I’ve been doing back of the envelope calculations based on my property portfolio to show how screwed tracking prices in property investments can be.I believe such coverage of property price performance is wholly misleading and misrepresents real returns for investors and home buyers.A  home and a home price  that was transacted even 10 years ago was a substantially different home to today’s home. A recognized stock price (not DRYS!)  over 10 years has a much better chance of reflecting price movements that correspond to positive and negative returns to the investor directly.The distortion in property prices comes from a slew of adjustments we need to make, and which can shave several percent off a value per year! I’ve used my own property transaction data to work out the adjustments that should be made. There are two main categories which need to be made (with many sub-categories).

Case-Shiller Property Indices Hugely Misleading...and Different from Stocks (LT Invst Windows Tight)

Founder and Strategist, Entext Economics & Strategy

Sean Maher

Founder and Strategist

Entext Economics & Strategy

Entext provides institutional investors with distinctive, actionable asset allocation and thematic research, which typically challenges the market consensus. Our clients range from credit, equity and multi-asset hedge and pension funds to family offices and sovereign funds. 
 
We focus on identifying key inflection points in macro data and relative asset performance amid the 'groupthink'  and confirmation bias that characterizes most investment bank analysis.

Macro Driven Investment Insight

<ul>
<li style="text-align: justify;">Wall Street has projected its wildest fantasies onto the largely blank canvas Trump provided, but this is politics reinvented as performance art.</li>
<li style="text-align: justify;">As the lack of policy coherence or even consistency becomes painfully clear, investors risk a degree of buyer’s remorse, reflected in the stalling USD, financials etc. rallies.</li>
<li style="text-align: justify;">
Globally, the macro and inflation data surprise indices have spiked further YTD - the turnaround in the Eurozone is the most impressive and least expected by the consensus or…</li>
</ul>


Wall Street has projected its wildest fantasies onto the largely blank canvas Trump provided, but this is politics reinvented as performance art.
As the lack of policy coherence or even consistency becomes painfully clear, investors risk a degree of buyer’s remorse, reflected in the stalling USD, financials etc. rallies.

Globally, the macro and inflation data surprise indices have spiked further YTD - the turnaround in the Eurozone is the most impressive and least expected by the consensus or…


'America First' Agenda Remains Contradictory, Vietnam Trip Notes…

Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

<ul><li>The US economy is expected to get a boost in 2017 through increased infrastructure spending and a lowering of corporate tax rates with the election of Donald Trump as the next US President</li><li>The Federal Reserve has signalled its intent to resume a gradual pace of rate increases going forward.</li><li>The dollar has strengthened with an expectation of higher fiscal impulse through government spending and tax cuts, the Fed is expected to continue tightening with higher growth and inflation expectations.</li></ul>

The US economy is expected to get a boost in 2017 through increased infrastructure spending and a lowering of corporate tax rates with the election of Donald Trump as the next US PresidentThe Federal Reserve has signalled its intent to resume a gradual pace of rate increases going forward.The dollar has strengthened with an expectation of higher fiscal impulse through government spending and tax cuts, the Fed is expected to continue tightening with higher growth and inflation expectations.

United States

Willis Towers Watson Public Limited Company operates as an advisory, broking, and solutions company. The Company provides a range of insurance brokerage, reinsurance, and risk management consulting services. Willis Towers Watson serves customers worldwide.

Willis Towers Watson (WTW US)

WLTW: A turnaround story or the continuation of prior challenges?

AON announced its acquisition of WLTW in early 2020, and the merger was set to close in 2H21, before the DOJ stepped in to block the deal. Shortly...

Enlightened Capital

The War on Greenwashing: UK Stewardship Code "Successful Signatories" Has Broader Implications

Telegraph from European front in global war on greenwashing. U.K. names stewardship victors ("not greenwashers"). Many notable casualties. Anti...

Kyle Rudden

Case-Shiller Property Indices Hugely Misleading...and Different from Stocks (LT Invst Windows Tight)

This topic has nagged me for some time. Two months ago when the Case-Shiller Home Price Index “made a new high” and after new highs again this...

Charles De Trenck

'America First' Agenda Remains Contradictory, Vietnam Trip Notes…

Wall Street has projected its wildest fantasies onto the largely blank canvas Trump provided, but this is politics reinvented as performance...

Sean Maher

Marketnomix Insights : United States

The US economy is expected to get a boost in 2017 through increased infrastructure spending and a lowering of corporate tax rates with the...

Rajan Govil