"Nick Griffin, the head of international equities at fund manager K2 Asset Management, is investing in some of the big global themes through companies that are listed on overseas sharemarkets. The manager has produced average annual returns of more than 12 per cent over the very long term in its suite of managed funds.
It does not mean blindly investing in themes, but investing only after carefully considering the quality of a company’s management and the valuation of its shares. It is investing with a close eye on financial fundamentals, where the company’s chances of success are increased by operating in a sector that is growing.
The Melbourne-based fund manager has holdings in Google, Walt Disney and companies listed in Britain that are expected to do well from the recovery in house prices there.
Griffin tends to invest in the biggest pure internet businesses. With the interconnectivity of the internet and the network effects, there is usually not much room for a No. 2. Google, Amazon and Facebook, for example, have no real competitors, he says.
K2 holds shares in companies expected to do well from the rise in the UK house prices.
The UK government is supporting the housing market and the interest rates there are at historic lows.
Griffin believes the driving forces behind it are structural in nature and won’t be wound back in the short term. He thinks it could be similar to what has occurred in the US housing market, where prices have risen.
K2 holds shares in Lloyds, the UK’s largest retail bank, which will benefit from mortgage sales growth, and in real estate agent Countrywide
