Spotlight on Aylon Ben-Shlomo, Managing Director, Aristotle Capital Management LLC
Global Thought Leader Spotlight
Aylon Ben-Shlomo, CFA, Managing Director, Aristotle Capital Management LLC
“The current period of persistently high inflation in the developed world has presented many institutional investors with an environment not experienced in over 40 years. While certain traditional and alternative asset classes are often identified as inflation hedges, focusing on high-quality businesses can also provide inflation protection.
“While the term “quality” is common in the investment management industry, we would like to explain how we think about quality and how that may determine whether a company will remain high-quality regardless of the macroeconomic or political environment.
“Identifying quality businesses is a combination of art and science. Quality does not lend itself to a formula and both, quantitative and qualitative “brushes” need to be applied.
“Instead of spending time making predictions or analysing the “news of the day” (which can change rapidly), investors ought to direct efforts toward understanding the long-term fundamentals of businesses.
“Before investing in a company, investors should spend time understanding its experience in prior times of adversity, its ability (or inability) to express pricing power, management’s ability to react to changing conditions and many other factors that may impact a company’s sustainable competitive advantages.
“In today’s market environment, we see the importance of investors continuing to focus on the long‐term fundamentals of businesses.
“We believe investors should not invest in low-priced companies if they do not deem them to be high-quality. Investors’ primary focus should be on companies with products or value-added services that typically are sold for reasons other than price alone. This leads to sustainable business models, high and/or growing margins and market shares, high returns on invested capital, and the ability to perpetuate a virtuous cycle.”
Aylon will be presenting on how to navigate equity portfolios through the current inflationary environment at Global Investment Institute’s upcoming Equities & Growth Assets Investment Forum, taking place on Wednesday, 7 September 2022 at the Westin, Melbourne CBD, Victoria.
To register your interest in attending, click here or for more information email zlatan.kapetanovic@globalii.com.au.
Aylon Ben-Shlomo, CFA, Managing Director, Aristotle Capital Management LLC
Aylon is a Client Portfolio Manager at Aristotle Capital and a member of the investment team. Prior to joining Aristotle Capital, he was a Vice President, Portfolio Manager and Equity Research Analyst at Pacific Investment Management Company (PIMCO) and an Analyst at Ivory Investment Management. Previously, he worked in Audit, Financial Services at Deloitte and Touche.
Aylon earned his Bachelor of Science degree in Accounting from the University of Maryland and his MBA in Finance from UCLA Anderson School of Management. He is a CFA® charterholder.
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