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THE INVESTOR
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37
INTERVIEW
What creates the
opportunity to buy
growth for free?
Volatility
Photo: Jason Gordon. Sources: 1 Merrill Lynch, May 2017; 2 Index and Active Management: International Evidence, Jan 2014; 3 businessinsider.com, January 2015
been losing out on royalties for
recorded music but are expanding
their revenues from live concerts.This
company saw the advantages
of owning both the artists’
management and the ticketing side.
The company has also set up a
market for fans to resell unwanted
tickets, cutting out ticket touts.We
see huge potential for it to widen use
of its remarkable knowhow in
marketing to millennials.
What are thechallenges to
your approachwhenvarious
markets are rising and falling
instepwitheachother, and
whenvolatility is low?
We have a distinctive and
sophisticated approach to correlation.
Typically, people avoid the obvious
links between sectors and
geographical regions: so, for example,
you wouldn’t invest solely in
different German banks as they
might be exposed to similar shocks.
But we go beyond that and expressly
look for investments with a diversity
of ‘business ideas’ behind them.
As a result, we have an eclectic
portfolio.