Can shipping be a play for leading asset allocators today? How will this theme be impacted by geopolitical tensions and the demand for new ships as we close out the year? Our latest Thematic Investors podcast powered by Vidrio Financial is available now. Listen today.
Kieran Cavanna, Host of Thematic Investors Podcast Series
In this latest episode of Thematic Investors Podcast, host Kieran Cavanna, Chief Investment Officer and Co-Founder, Old Farm Partners is joined by Will Homan-Russell, Chief Investment Officer, WMC Capital. Will brings his expertise on global shipping investment plays and how various market forces can impact the future of this industry.
Each year, there are around 70,000 vessels carrying 12.5 billion tons of goods by sea. These staggering numbers are broken down into carrying containers (between 15-20%) filled with cars and finished products, while the remaining transports carry commodities (80-85%) to keep the world running. These sectors come with specific supply and demand dynamics based on utilization levels, which can be a signal to institutional investors to get involved.
Additional key points that are highlighted in this podcast include:
- discover the remarkable evolution of the shipping industry over the past half-century and uncover the key supply and demand dynamics that empower investors to accurately forecast utilization trends and performance.
- with current geopolitical tensions running high globally, how does the shipping industry navigate these shocks to the system, and how can allocators take advantage of these investment opportunities?
- an exploration of the dynamic nature of the shipping industry, where the ebb and flow of demand drive the need for new builds and replacements. Dive into the transformative impact of cutting-edge emission regulations on vessel design, and what the new carbon intensity index standards will be as the industry moves forward.
- as the International Maritime Organization mandates a 40% reduction in shipping's carbon intensity by 2030 and a shift to carbon neutrality by 2050, what groundbreaking innovations will rise to the challenge? Possibilities include retractable sails, advanced rotors, and cutting-edge propulsion technologies like green ammonia or methanol.
- what factors have led to the decline of shipbuilding in the US and UK, and where are the innovative hubs of production emerging globally today?
- and more
Connect with Will Homan-Russell
WMC Capital
Mr. Homan-Russell is an experienced professional investor in the maritime sector, currently serving as Chief Investment Officer of UK based WMC Capital Ltd., where he cofounded Albemarle Shipping Fund. From 2003 to 2018 he worked for Tufton Oceanic Limited, a fund management company specializing on investments in the maritime and energy sectors. Mr. Homan-Russell holds an MA in Mathematics from Oxford University and an MSc. in Finance from London Business School.
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.
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.
