I’m not trying to be dramatic, but I genuinely believe that stagnation is our greatest adversary—if you’re not growing, you’re withering away. This year, I’ve tried to embrace this philosophy both in my professional life and beyond. Whether it’s navigating market fluctuations, exploring new investment opportunities, or setting big scary goals, I’ve realised that the key to success lies in an unwavering commitment to growth and moving forward. That said, if I had taken my own advice and kept moving, I would have avoided another kiss from a man (of war jellyfish) at the weekend…
Our approach to investment reflects the same principles: advancing and embracing change is crucial to our success as a team and a business. The investment landscape is constantly evolving, and standing still is simply not an option. The investment team have certainly been moving this month - participating in client events, meeting with fund managers, delivering roundtable presentations, and seeking out new, attractive opportunities.
One of the standout meetings from the past month was a mobility and logistics investment opportunity. Its investment universe essentially captures the value chain of businesses involved with moving people and things from A to B. The automotive, transport and wider mobility market is undergoing a transformational social, technological and economic shift, fundamentally changing the way people and products are moved. This presents some really interesting investment opportunities.
There are a number of major forces that will drive this theme. Firstly, the globalisation of consumption and trade is being fuelled by the globally expanding middle class. As wealth increases, so do consumption habits and behaviours. This leads us to the second driver: an increase in inter- and intra-city connections as more goods and people will be moving globally. In light of rising protectionism, the pandemic, geopolitical tensions, and conflicts, new trade routes and connections are emerging. Examples include the fallout between Russia and the West, evolving trade dynamics with China, growth within the Association of Southeast Asian Nations (“ASEAN”), and the trend of reshoring in the U.S.
Naturally, this shift necessitates greater infrastructure investment. Both emerging and developed nations require new infrastructure while existing structures in developed countries need upgrades. This means we are currently in a phase of accelerated infrastructure spending.
Another critical factor is the need for improved connectivity and efficiency. As our world becomes more interconnected, the rise of e-commerce has favoured prominent front-end brands over the past decade. However, now we must focus on logistics—companies in this sector will play a pivotal role in supporting e-commerce operations. Sustainability also comes into play, with electric vehicles and their associated infrastructure becoming increasingly vital.
Finally, mobility and logistics companies are essential for providing equitable access for individuals to move freely, meet their basic needs, and thrive. These companies have facilitated a dramatic increase in trade over the last century, outpacing global GDP growth significantly.
The mobility and logistics sectors, driven by globalisation, technological advancements, and evolving consumption patterns, present exciting avenues for investment. By focusing on these transformative forces, we can position ourselves to capitalise on emerging trends that promise to reshape the future of trade and connectivity. With several catalysts including inflation normalisation, interest rates coming down and technology offering new ways to improve efficiency and real-time data, we think this warrants some further research.
As we navigate the complexities of a rapidly changing world, embracing change and seeking out innovative opportunities will be key to our success. As we continue to explore these opportunities, we remain committed to growth and ensuring we are always moving forward - even if it means dodging a jellyfish or two along the way.
