Thriving as a Forever Student in the Investment Industry

Before we get into questions about equity markets, can you tell us a bit about why you chose a career in the investment industry?

Having studied business and international relations, I was always fascinated by the interconnections of the global economy and how disciplines like economics, politics and culture intersect to shape markets. Investment management offers the perfect environment to engage with this complexity. Every day presents a new puzzle – whether it's deciphering how geopolitical events impact industries or analyzing emerging trends. This constant intellectual challenge keeps me feeling like a "forever student", a role I thrive in.  

What are your thoughts on the current investing environment for Global Industrials?

We love covering the industrials sector as it presents a compelling mix of secular and cyclical trends. On one hand, the sector is well-positioned to capitalize on transformative structural trends such as electrification, progress in artificial intelligence, the drive for energy security, onshoring of global supply chains and significant global investment in infrastructure. These themes are reshaping industrial markets, creating long-term tailwinds for companies that can innovate and adapt.

However, it's equally important to recognize that industrials are inherently cyclical. Sector performance is tied to macroeconomic conditions, with specific markets often moving through distinct cycles at different times. To navigate this environment effectively, investors must remain vigilant in identifying inflection points – whether it is an uptick in demand in a previously struggling market or signs of a peak in a fast-growing one.

Can you give some examples of these secular and cyclical opportunities?

On the secular side, electrification has captured investor attention within the industrial landscape. This is a trend fueled by a push toward energy efficiency, the catch up of investment in grid networks and, more recently, the rapid expansion of data center infrastructure to support Artificial Intelligence (AI). The electrical equipment industry has found itself at a massive supply and demand imbalance that has awarded global leaders and smaller players alike with the opportunity to drive volume growth, take pricing and expand their margins along the way. 

On the cyclical side, I would highlight the railroad sector. By traditional definitions, railroads operate in a structurally attractive industry – the market is consolidated into regional duopolies, barriers to entry are high and customer relationships tend to be sticky. However, over the past two years, the cycle has not been in favour of the railroads. The consumption glut of goods we experienced throughout the pandemic quickly shifted to an all-out spending spree on services, leaving the rails over staffed for a slowing volume environment. Looking ahead, the rails are well positioned for a firming up of the macro environment and rebound in volumes having improved operating metrics and taken cost out of the business. I think the sector is set to drive strong earnings growth once the cycle inevitably turns.

What would you say has been the most surprising thing you have learned or experienced working in investment management?

I have been surprised by the level of creativity that this career demands. While many view it as a numbers driven field, I have found that interpreting market dynamics, understanding consumer behaviour and sizing market opportunities all require a creative mindset. Thinking outside the box has proven to be as equally important a tool as analytical rigor. 

When not focusing on money management, how do you enjoy spending your free time?

Outside of work, my partner and I enjoy exploring the Toronto restaurant scene with an ever-growing list of exciting new spots to try. Staying active is also a big part of my life. I spend winter weekends skiing and love to mix in a Pilates or boxing class to stay energized and balanced.