Are European investments a bargain in energy, infrastructure, defense, and other themes? Join us on our newest episode of the Thematic Investors podcast as we welcome Stuart Mitchell to share his insights on Europe, and valuations across North America.
Kieran Cavanna, Host of Thematic Investors Podcast Series
When looking at European investments, how will the UK, France, Germany, Spain, and Italy align on energy transition, innovative technology growth, financial services, and more? How can institutional investors capture this market when comparing them against more attractive U.S. opportunities?
In our latest episode of the Thematic Investors podcast, host, Kieran Cavanna, speaks with Stuart Mitchell, Managing Partner | CIO and Investment Manager, S.W. Mitchell Capital LLP. Learn more about Stuart’s background that took him from studying medieval history through the values of detaching emotions from investing, an appreciation of analytical research, and on to managing over $2bn AUM of European equity assets.
Stuart discusses:
- his background in investing and how he shed the bureaucracy, controls, procedures, and politics of large organizations and created his own investment firm.
- how the UK market differs in valuations, sectors, and discounts when compared to America and why this isn’t explained by profitability or growth rates.
- the fanatic move to electric vehicles and other forms of energy in light of oil demand going up in the short term just to keep supply and production at stable levels.
- why is Europe having a Hamiltonian moment? What investments will be prioritized by a joining of European states in terms of infrastructure, energy, defense, and more?
- how are investment opportunities in defense positioned across the UK and will it ever go above 2% in GDP? If extra spending does occur (due to geopolitical events) why would America get the investment?
- why are alternative investments (from BP, Chevron, Exxon and others) in wind, solar, and hydrogen simply not covering their costs of capital and are predicted to lose money over the long term.
- European banks appear stronger than those in the US when reviewed for capitalization, leveraged ratios, liquidity, and more.
- how culture plays a role in hiring people at S.W. Capital, from year long internships to individual specialized areas of expertise.
- and more!
Please note, the information covered and posted represents the views and opinions of the guest, and does not necessarily represent the views or opinions of Vidrio Financial and or our host, Kieran Cavanna. The content has been made available for informational and educational purposes only. The content is not intended to be a substitute for professional investing advice. Always seek the advice of your financial advisor or other qualified financial service provider with any questions you may have regarding investment planning.
Connect with Kieran Cavanna:
- Old Farm Partners
- LinkedIn: Kieran Cavanna
About Kieran Cavanna:
Kieran Cavanna is the Co-Founder and CIO of Old Farm Partners. Old Farm is a hedge fund allocation firm focusing on small and mid-sized hedge funds, as well as co-investment opportunities with $600m under management. Prior to Old Farm, Mr. Cavanna worked at Soros Fund Management where he served as the Head of the External Manager Selection team. Mr. Cavanna and his team performed due diligence on and allocated to a select group of hedge funds that deployed a wide variety of hedge fund strategies. Prior to Soros, Kieran was a Partner and the Head of Research at Titan Advisors, a $5b fund-of-hedge funds. In total Mr. Cavanna has been allocating to hedge funds for 18 years. Mr. Cavanna started his financial career at KPMG Consulting as Senior Analyst. Mr. Cavanna graduated from the University of Richmond with a BA and received an MBA from Vanderbilt University.
Connect with Stuart Mitchell:
About Stuart Mitchell:
Stuart is the Managing Partner and CIO of S. W. Mitchell Capital and the Investment Manager of the SWMC European Fund, as well as a number of managed accounts.
Prior to founding SWMC in 2005, Stuart was a Principal, Director, and Head of Specialist Equities at J O Hambro Investment Management (JOHIM, now Waverton Investment Management). At JOHIM he set up and managed the Charlemagne Fund, a long/short European fund, and the JOHIM European Fund, a long-only European fund. The JOHIM European Fund rose by 133%, from inception in December 1998 until March 2005, compared with 8% for the benchmark index. It was rated number one within its sector by Micropal as well as awarded three stars by Standard & Poor’s.
Upon leaving university in 1987, Stuart joined Morgan Grenfell Asset Management (MGAM) and soon afterward assumed responsibility for managing the continental European equity assets for MGAM’s British pension fund clients. Stuart was appointed a Director of MGAM in 1996. He subsequently took on the role of Head of European Equities and was responsible for $27 billion of equity assets. Whilst at MGAM he managed the Morgan Grenfell European Fund, which rose by 123% from January 1990 to June 1996, compared with 85% for the benchmark index. It was awarded first place in its sector in the Micropal Five Year Awards in 1996.
Stuart was born in Scotland and educated at the University of St. Andrews, where he read Medieval History. He is also a graduate of the Owner/President Management program at the Harvard Business School. Stuart speaks English and French.
