Most companies can piece together some kind of sustainability story. However, clarity, prominence, and measurability of goals are key to gaining buy-in from investors. Elite portfolio manager (PM) Hugh Cuthbert thinks British supermarket giant Tesco could do more.
Hugh Cuthbert, Premier of Citywire’s AAA-rated SVM All Europe SRI fund, said: “[It’s] do OK, could do much better and needs to be watched and pushed by shareholders”.
Tesco has enjoyed a multi-year recovery following an accounting scandal in 2014. The fierce graft has made it one of the 10 most popular UK stocks with the world’s top fund managers. Stabilizing the ship has also enabled the UK’s largest supermarket chain to better cope with soaring inflation and the cost of living crisis.
Despite some reservations from PMs, Tesco is working on several fronts to make its operations and those of its suppliers greener. This plays off Fix the Future’s new agriculture and food tech theme.
We used our unique collective conviction ranking methodology to find the top 10 stocks of elite managers in Asia. One of the main ways major investors are looking to take advantage of the region’s rapid economic growth is through banks.
Other domestic players include China’s top luxury drinks company Kweichow Moutai, gaming giant Tencent and Indian conglomerate Reliance Industries. Two global leaders are also in the top 10. These are fast-growing technology players Taiwan Semiconductor Manufacturing and Infosys.
Randy Cohen, a lecturer at Harvard Business School, has spent the past 15 years studying the performance of PM’s most compelling bets, which he considers indicative of their “best ideas.” Its findings since it published its first paper in 2009 until the last update in 2021 have been consistent.
“What you see when you look at the data is that after the third, fourth, or fifth best idea from fund managers, everything starts to look pretty much like market performance,” Cohen says.
Other studies since Cohen first published his research also suggest that fund manager skills are only consistently evident in top holdings. fix the future focusing on the most convinced bets from the world’s best managers aims to harness some of that magic while illuminating the thinking and process of some of the world’s best investors.