Zehrid Osmani, Manager of the Martin Currie Global Long Term Unconstrained Fund, reveals his best-loved stocks for Valentine’s Day
- Ferrari
“The Italian sports car manufacturer offers a unique proposition for global high net worth individual (HWNI) growth. Ferrari focuses exclusively on the high-end luxury car market. This focus is important to preserve brand value. The company operates a tight supply and demand model maintaining exclusivity and scarcity, which gives it superior pricing power.
“High demand for their products, limited production and the loyalty of their customer base (the Ferraristi) brings stickiness in demand. Greater use of their Special Service and Icona platforms gives them an ability to raise their average selling price – already a sizeable premium to other luxury car manufacturers.”
- L’Oreal
“L’Oreal is the number one firm in global beauty, with market leadership maintained through strong research and development (R&D), and its marketing capability. Growth opportunities come from its leadership in the underpenetrated e-commerce market, and an Asian business harnessing increased travel in the region. At the forefront of sustainability, the ‘L’Oreal for the Future’ program has quantifiable objectives to limit its impact on climate change and natural resources, alongside social focused initiatives.
“It is well positioned to harness growing emerging market wealth and increased travel within the Asian region. The company has a strong presence in China’s Haitang Bay, the world’s largest Duty-Free shopping complex, and has expanded into the new Haikou International Duty-Free City (opened late 2022), twice the size of Haitang.”
- Moncler
“Italy’s Moncler is a leader globally for super premium down jackets. It has a rich heritage and strategic focus on long-term sustainable and responsible growth. The firm is driven by organic growth from pricing power and geographic expansion – with strong emerging market potential. It has a growing presence in China, with the country now representing its largest source of global revenues. It has a network of 40 stores and plans to open more.”
- ASML
“The Dutch semiconductor manufacturing equipment company is the world’s leading manufacturer of lithographic systems and the company’s technology is fundamental to the mass production of semiconductor chips. A lithographic system projects light through a blueprint of the chip that will be printed – this is known as a ‘mask’ or ‘reticle’. The company’s products are critical in enabling innovation and development in the semiconductor industry, helping to reduce the size and cost of chips as well as increasing their energy efficiency. ASML’s customers include some of the largest semiconductor foundries based all around the world including TSMC, Samsung Electronics, and Intel. We believe ASML looks well positioned to benefit from a number of structural long-term growth trends – most notably the transition to clean energy.”
- Kingspan
“The company fits into the greener buildings trend, with its leadership position in building insulation materials. We believe it is poised to benefit from tighter energy efficiency regulations. The company can help other businesses deliver on their net zero targets. For example, storage facilities, factories and warehouses all need insulation, and Kingspan provides advanced insulation panels, including some with integrated solar cells.”
