From his home base in the Bahamas, veteran fund manager Mark Holowesko has a ringside seat for the great crypto crash. The island nationFTX and Holowesko says the firm’s employees are still getting around town and their compound, complete with their branded backpacks.
While the firm counts several Australian family offices as clients, local retail investors now have the chance to gain exposure to Holowesko’s value approach after he joined Future Generation Global, the listed investment company that is theA roster of top fundies provide their services to Future Generation Global for free, allowing the funds to donate 1 per cent of their assets to charity each year.
Back in the 1980s, Wilson was working for a stockbroker in New York and Holowesko was on his list of numbers to call and pitch stock ideas. If you go back to before the pandemic, price-to-sales multiples remain at the highest point in history, Holowesko says. But the correction markets have experienced has created fabulous value for those prepared to look for it.For Holowesko Partners, that means shifting away from the US and targeting what it argues are oversold markets, such as London, Europe, Japan and Taiwan. While US stocks account for 70 per cent of the MSCI Value Index and about 62 per cent of the MSCI World Index, Holowesko Partners’ net exposure to the US is 14 per cent.
“We think we’ll get about 40 per cent of its market cap back in dividends and share buybacks from their excess capital. When you consider how cheap it is relative to our recessionary earnings estimate and how much capital we expect to get back … I’m quite happy with Lloyds Bank.”