I am delighted to introduce our fourth ‘revamped’ Active Ownership Report. In my last introduction a year ago, I wrote that ESG, indeed, all investment analysis, “needs to be washed down with a large dose of intellectual humility, curiosity and willingness to adapt.” 

Little did we know then! 

In addition to the supply chain impacts of the war in Ukraine and lingering effects of Covid-19, market participants found themselves dealing with the fall-out of a series of financial (mis)adventures: QE, a totemic shift towards passive investing, and the rapid integration of ESG policy with a simplistic, exclusionary focus. 

As orthodoxies of the last decade are reappraised, opportunities for patient, value-orientated investors abound. At Hosking Partners, we identify these opportunities not by becoming stuck in the weeds, but by stepping back and looking at the big picture. We emphasise open, honest and thoughtful debate. We recognise that complex issues rarely generate simple, binary answers. Comfortable rules of thumb are often just that. Received wisdom is a misnomer. The honest response to most questions is often, “I don’t know.” 

I am delighted to share another report that gives our clients a window into our thinking. We hope that it spurs debate and very much look forward to hearing your thoughts in our next discussions.