As global stock markets grapple with geopolitical tensions and persistent inflation, investors are seeking havens of opportunity. Rob Hinchliffe, a portfolio manager at PineBridge Investments, sees potential in selecting stocks that are undervalued by the market.
PineBridge’s Global Focus Equity Fund
Hinchliffe manages the Global Focus Equity Fund, which has consistently outperformed its benchmark, the MSCI All Country World Index, by investing in a portfolio of around 40 undervalued stocks. The fund’s long-term investment strategy emphasizes stock selection and risk management.
Hinchliffe’s Stock Picks
Among Hinchliffe’s top holdings are Microsoft, Alphabet, and Nvidia, which together constitute the “Magnificent Seven.” While these stocks have performed strongly in recent years, the portfolio manager has an underweight rating on them and instead favors five under-the-radar stocks with significant potential.
TE Connectivity and Legrand
TE Connectivity, a U.S.-Swiss company, supplies electronic components to the auto and technology industries. Hinchliffe believes the company’s wide customer base and various business lines provide ample growth opportunities.
Legrand, a French company, designs and manufactures electrical devices. Hinchliffe notes its strong position in the electrical equipment market.
Walmart
In the consumer discretionary space, Hinchliffe favors supermarket chain Walmart. The fund manager believes that Walmart’s vast customer database and its increasing focus on digital advertising will drive future growth.
Thermo Fisher
Thermo Fisher is a global healthcare company that operates in various segments of the healthcare industry, from drug discovery to drug production. Hinchliffe expects the company to benefit from the growing demand for healthcare products and equipment.
Investing Strategy
Hinchliffe’s investment strategy emphasizes diversification within the portfolio to mimic the risk profile of the broader market. He focuses on finding stocks that offer better value than the market currently recognizes, with a preference for companies that have long-term growth potential.
Hinchliffe advises investors to conduct thorough research and assess a company’s true value before investing. He also emphasizes the importance of risk management and portfolio diversification to minimize losses in volatile market conditions.
