Pacific Horizon - Update research from QuotedData
8th December 2022
Convergence opportunity
Pacific Horizon (PHI) has in 2022 found itself at a convergence of both negative sentiment towards Asia and growth stocks more generally (a function of lockdowns in China, a slowing global economy and rising interest rates). While this has dented its performance in the short term and pushed it down its peer group rankings (see pages 22 to 24), the manager remains confident in the portfolio, highlighting that many of its companies are cheap (Asia Pacific ex Japan equities are trading at close to their five-year lows on a price-earnings (P/E) basis, and look cheap versus global equities more generally), are cash generative and retain their strong growth prospects.
Reflecting the current poor sentiment, PHI's discount to net asset value (NAV) is approaching its five-year high (excluding a brief spell during COVID), which offers investors an additional layer of comfort as it could tighten if sentiment improves.
Full research:
https://quoteddata.com/research/pacific-horizon-convergence-opportunity-qd/
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