Chinese stocks climb “wall of worry”
February 19, 2025 | NS Partners
Chinese money growth has normalised while the MSCI China index remains on a steep valuation discount despite recent outperformance.
Unique investment philosophy
Profitability focuses stock selection
Securities expected to generate high/improving economic
profitability relative to the market should outperform
Liquidity analysis
Money supply leads economy, but excess money moves asset
markets earlier i.e. Money Moves Markets (Liquidity Theory of Asset Prices)
Peer review ensures discipline
Revalidate, test conviction continuously; ensure tight capital
discipline (Behavioral Finance Theory)
Bias towards companies that have:
Stable revenue
High return on invested capital (ROIC) across business cycle
Do not require leverage to generate returns
Strong brand and/or intellectual property
Resilience to change and technological innovation
Opportunities to deploy capital to grow
Organic growth rather than via large acquisitions
Low threat of regulatory risk
Simple and easy to understand business model
Investment process –
economic analysis
Fundamental macroeconomic liquidity analysis provides the framework for portfolio construction
Interpreting liquidity trends is paramount to country, sector and thematic views
Liquidity analysis dictates risk appetite at regional, sector and total portfolio level
NS Partners
Global Equity
A portfolio of global equities measured against the MSCI World Net Index.
NS Partners
Global Equity Focused
A focused portfolio of global equities measured against the MSCI World Net Index.
NS Partners
International Equity
A portfolio of non-North American equities measured against the MSCI EAFE Net Index.
NS Partners
International Equity Focused
A focused portfolio of non-North American equities measured against the MSCI EAFE Net Index.
NS Partners
US Equity
A portfolio of US equities measured against the S&P 500 Index.
NS Partners
ACWI ex-US
Focused Equity
A focused portfolio of non-US equities including exposure to emerging markets, measured against the MSCI ACWI ex-US Net Index.
NS Partners
European Equity
A portfolio of equities in Europe (including or excluding the UK) measured against the MSCI Europe Net Index.
Insights
Read More
UK inflation: it’s getting complicated
February 13, 2025 | NS Partners
The Bank of England expects rises in regulated prices and taxes to push headline CPI inflation up to 3.5% by June but the forecast likely underestimates disinflationary pressure from monetary weakness.
DeepSeek frenzy a reminder of China’s ability to innovate
February 12, 2025 | NS Partners
This month’s commentary explores the market implications of Chinese AI innovation and market implications of AI ubiquity.
Global industrial revival on track but obstacles ahead
February 5, 2025 | NS Partners
Manufacturing surveys may reach a short-term peak this spring, with the extent of any retracement partly depending on trade policy developments.
UK money update: still weak
January 31, 2025 | NS Partners
MPC inertia had condemned the UK to economic underperformance well before the October Budget.
Global money update: tentative positive
January 29, 2025 | NS Partners
US / Eurozone / Chinese money measures rose solidly in December but a further pick-up is required to warrant hopes of a 2026 global economic “boomlet”.
ECB policy easing is working
January 22, 2025 | NS Partners
Eurozone real money momentum has turned positive and is likely to rise further, signalling improving economic prospects.
Brazilian Blackjack: Decoding the allure of a high-risk, high-reward market
January 21, 2025 | NS Partners
This month’s commentary covers our search for a winning hand in beaten down Brazilian equities.
Chinese money update: positive signal
January 16, 2025 | NS Partners
Chinese money and credit numbers for December suggest that policy stimulus is becoming effective, warranting an upgraded assessment of economic prospects.
A “monetarist” perspective on current equity markets
January 7, 2025 | NS Partners
Global money growth remains subdued, support from a previous monetary overhang has ended, while the stockbuilding cycle is approaching a less favourable phase for risk assets.
Chinese money update: slow recovery
December 18, 2024 | NS Partners
Chinese money trends are normalising after weakness, suggesting modest economic improvement.
Weaker US business money trends
December 13, 2024 | NS Partners
Sectoral numbers show that recent US money growth has been focused on the household and financial sectors, with business holdings falling.
South Korea rocked by president’s attempt to impose martial law
December 12, 2024 | NS Partners
Political risks spike in South Korea, testing the country’s institutions, the currency and markets. The stampede into US equities continues. Is it sustainable?
UK money update: corporate liquidity squeeze
December 10, 2024 | NS Partners
Monthly UK money growth was boosted by households scrambling to dispose of assets ahead of the Budget, with a reversal likely and corporate liquidity trends worryingly weak.
Eurozone inflation: “monetarist” optimism on track
December 4, 2024 | NS Partners
Eurozone services price momentum is “unsticking” as expected, supporting the forecast of sub-2% 2025 inflation.
For additional information on NS Partners Ltd, please contact:
Brent Wilkins
Senior Vice President,
Head of Institutional Sales, Canada
Eric Hasenauer
Senior Vice President,
Co-Head of Institutional Sales, USA,
John Ricketts
Senior Vice President,
Co-Head of Institutional Sales, USA
Anna Kirk
Chief Compliance Officer
& Head of Client Service
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NS Partners Ltd.
December 8th, 2021