00:00 President
My next guest is to use the use of an investment strategy called a quote opportunistic value approach. Join me now, we have Aaron Dunn, co-responsible for Value Equity and Portfolio Manager at Morgan Stanley Investment Management. Aaron, delighted to have you here with us. So let's start that exactly opportunistic value approaches are and how other investors can follow your example there.
00:38 Aaron Dunn
Yes, we adopt an approach, I think, which is extremely relevant on today's market, and it is, uh, starting with companies in which we seek to invest, leaving the stock aside and saying that we want, uh, good companies that gain good yields on capital, they allocate the appropriate capital, they maintain an appropriate assessment that does not manage Economic flow, value composed in time. This is the underlying general view, uh, the way we look at companies. And so, from the point of view of value and an opportunistic perspective, do we examine this business that we say, okay, where are we on a risk of risk reward? Where are we on one, uh, uh, where we think that our disadvantage is in relation to an advantage and you know what are the causes of dislocation could be something as we saw in March and April, which is the price, uh, uh, the movement and the volatility of the price on the market. And this is I think that what creates a lot of opportunities for us because you know, good companies have been thrown with bad businesses and early April and throughout March. And so, this creates a ton of opportunities for us from, uh, to buy what we would use as very good companies. So what we are looking for is a very strong reward or vision of risks compared to our disadvantage. We are looking for good companies to invest. We think it's extremely important today.
03:01 President
Who are some of these companies? Give us an idea, especially the ones you look at, assessing and being able to check all the elements of the list you have just disposed of.
03:17 Aaron Dunn
Yeah. And I think it's extremely important today. And what you are going to find is that what we have had so far is really more technical and uh, you know, people selling actions because they were, they were probably too allocated. UM, and therefore, what you have seen is that the whole market in a blind way has fallen. Now, what I think we are about to see is the impact of the benefits of what's going on in the economy. UM, but when you have these periods of a kind of uncertainty, investors tend to flow where companies can still develop. And I think that when we do our fundamental work and we look at companies, we want to find companies capable of growing, uh, not independently of the economy, but really with a thesis in mind which perhaps allows them to increase income thanks to the reduction of costs or, or a change uh, of the corporate structure sometimes. So, but it seems really interesting. So, two actions or three actions that I would mention, you know, one is McDonald's. Uh, this company reported Uh, Uh, last week. Uh, and they reported what is not a big quarter. The low -end consumer is broken, it is very low. UM, but they innovate in the EUH, in the menu, and I think it's extremely important. It is a Capital Light business model. They do not have the restaurants, they, they, they have uh, uh, entrepreneurs to do so. It is therefore a Capital Light business model and maintaining a fantastic assessment. And with this innovation in the menu, we think they are bringing value to customers and we think you will start to see, start to see sales really increase.
