Fund managers diary
Share
Qie Zhang is a North American equity investment analyst at Aberdeen Asset Management. Her diary runs from January 4-10.
Monday Refreshed after a holiday, I arrive at the office early to catch up and plough through my emails. They are stuffed full of broker recommendations and I delete most of them immediately.
During our weekly research meeting we discuss what may happen to our financial and consumer holdings if the economy continues to recover to such a point that interest rates begin to normalise.
I have neglected my jogging routine while on holiday, so I head to the Schuylkill trail [a trail in south-eastern Pennsylvania] with a colleague from fixed income for our usual Monday run.
Tuesday I spend the day completing an investment report on CVS Caremark, which we hold in our large cap portfolios. We spoke to the outgoing and incoming CFOs [chief financial officers] about the direction of corporate strategy and operational challenges they are facing in their pharmacy benefit management business. Overall, the tone of the comments was constructive and our pre-meeting concerns were largely overcome. Writing the report makes me think about the company and why we have confidence to invest in it.
Later a colleague and I discuss the merits of TJX, an off-mall discount retailer, prompted by its record comparable store sales. Despite the need for people to save a little more and the unemployment rate at 10%, Americans still spent a lot of money over the holidays. Yoga class tonight. (article continues below)
Wednesday Monsanto releases first quarter 2010 results. After disappointments from its agrichemical segment in 2009, this year is shaping up better as the seed and traits segment reports an accelerated development pipeline with more projects showing promise. The conference calls our holdings participate in after releasing results can be a good source of information about trading conditions.
Thursday I speak to the CEO [chief executive officer] of a small cap solid waste collection and disposal company. Despite waste volume declines in the recession, the company continued to increase revenues and earnings through price increases and acquisitions.
Friday I speak to Euronet Worldwide’s CEO. We think the company has an attractive growth profile from its exposure to the rise in automatic teller machine transactions outside developed economies. While cash remittance from America to Mexico has dragged down earnings in its money transfer business, all its segments will experience significant growth in the medium to long term, as the need to trade currencies between physical and electronic forms continues to rise.
”After loading our wagon with a box of 40 Eggo Waffles I notice the car park is more congested than ever”
Saturday I go for my usual six-mile jog. The thermometer reads 17 degrees Fahrenheit as I step outside, trying to remember why I enjoy this pastime.
My route takes me past a house that’s been on the market since summer 2008, and I notice that the “for sale” sign has finally changed to “sold”. I wonder if the extended home buyer credit helped keep the price reduction reasonable, somewhat worried that it may affect the value of my home just up the road.
Sunday My husband and I go shopping at Sam’s Club, Wal-Mart’s own wholesale warehouse club. We fill the car up with cheap fuel before stocking up with family-sized shampoo and food as we wait for new tyres to be fitted on the car. The checkout lines are huge. After loading our wagon with a box of 40 Eggo Waffles I notice the car park is more congested than ever—a predictable trend since our first trip there two years ago.
