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Investment Solutions Forum 2019 SG - Exclusive Insights - Mehak Dua - 2

Mehak Dua of GMO

Jun 17, 2019

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1. Are there any thematic / more secular equity ideas that are poised to do well? Like the environment and climate change?

Video transcript

1. Are there any thematic / more secular equity ideas that are poised to do well? Like the environment and climate change?

Jeremy Grantham, one of our co-founders, one of our three co-founders, believes that there will be a secular shortage of natural resources. We therefore have a strategy that builds upon that. And we also think climate change is real and is here to stay. So we have a strategy that builds upon that. In both these strategies, we've taken a very pragmatic approach. In our resource strategy we're buying publicly listed resource equities that are very volatile that most investors don't touch because they have nothing to hide behind. And we take a value oriented approach to investing in a resource equity strategy. In the climate change strategy, we’d never buy something like a Tesla because that's too expensive for us, but we go about taking a value oriented approach in a growth universe. We play electric vehicles through battery operators for instance. And off the beaten path, we had a climate change strategy that is benchmark to the market. And it's not some esoteric ESG type benchmark, but we believe we can keep track with the market. We also have a resource equity strategy that does have a resource benchmark, and it's done pretty well over time.