Inside Artisan's International Value Fund with Portfolio Manager David Samra

Inside Artisan's International Value Fund with Portfolio Manager David Samra – The Acquirers Podcast

Market views

Bullish

005930— Samsung Electronics was purchased at $250B enterprise value (equal to their sunk capital in leading-edge memory manufacturing capacity) when the market was pricing the capacity as worthless during a down cycle. The company has since fixed technical issues and represents a special company in the memory chip industry.
CHEMICALS— European chemicals sector was identified as a fertile investment area a year ago when the entire industry was being taken down by ETFs due to Chinese dumping of excess production, creating opportunities in competitive European companies.
AILOSERS— Companies classified as 'AI losers' are trading at attractive valuations despite uncertain AI futures. For brave investors, there are interesting businesses in this bucket that have been unfairly discounted.

Bearish

005930— Samsung Electronics valuations now imply the company can sustain gross margins higher than historical levels following the AI boom. The Korean market has shifted from a 'Korean discount' to 'Korean speculation' with triple-levered ETFs and government promotion of stock investment.
RUSSIA— Russian assets present extreme corporate governance risk, representing the bad extreme of the spectrum. US investors faced government shutdowns when Russia invaded Ukraine, with similar risks potentially applying to Chinese assets if geopolitical tensions escalate.

Not investment advice.