Finding Silver Linings: International Investing Through Trade Policy Turbulence | EP186

Art of Boring

In this episode, portfolio manager, Peter Lampert discusses international equities and the impact of tariffs on portfolio management. He provides insights into how his team has been preparing for potential tariffs since Trump's campaign, explaining that most of their international portfolio companies have limited export exposure to the U.S. and instead operate primarily in domestic markets across various regions. He highlights their strategic decision to exit positions that are heavily dependent on global trade, while maintaining confidence in businesses with resilient management teams capable of navigating economic uncertainty. He also shares personal strategies for maintaining a clear head during market volatility and points out some underappreciated silver linings amid tariff concerns.

Key points from this episode:

• How the international equity team prepared for tariff risks during Trump's campaign, viewing market reactions in February as too benign given potential economic impacts.
• Many companies in their international portfolio have minimal direct exposure to U.S. tariffs, with many operating domestic U.S. businesses or serving their local markets, like Compass (UK-based catering company with 60% US revenue).
• The importance of emotional discipline, especially during market volatility, and having a team structure that promotes rational decision-making.
• Potential silver linings that may have been overlooked by markets, including Europe's increased investment in defense and infrastructure, and China's opportunity to shift toward more domestic consumption.

Host: Rob Campbell, CFA, Mawer Institutional Portfolio Manager Guest: Peter Lampert, CFA, Mawer Portfolio Manager

This episode is available for download anywhere you get your podcasts. Founded in 1974, Mawer Investment Management Ltd. (pronounced "more") is a privately owned independent investment firm managing assets for institutional and individual investors. Mawer employs over 250 people in Canada, U.S., and Singapore.

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