00:00Does macro volatility. Has it made your job more difficult. I mean look our approach is more focused on intrinsic
00:09value and we do hedge our positions. And so at a level the macro impact is is limited. But to
00:16echo some of the points the other folks have mentioned when the market is weaker and a bit more volatile
00:22it can present more opportunities. And certainly in a number of markets we focus on Japan Korea and elsewhere.
00:28We've seen a good amount of opportunity presenting itself. Well in some of those opportunities James include the toilet company
00:34Toto Agenomoto a seasoning company. Why those targets. Yeah I mean Toto is one that everyone likes to mention because
00:44it is generally sort of as the toilet business. And you know as its key product the famously heated toilet
00:52seats. But within there there is a semiconductor business which focuses on creating components
00:57for semiconductor manufacturing equipment. And as such we've found a hidden AI beneficiary in that company which is it's been
01:06quite a good investment for us so far with with plenty of outside.
01:10Agenomoto similar story. Again there is a division in there that has got more of a semiconductor focus with an
01:17AI supportive angle. And that's a thing we like despite the volatility we see in the market.
01:24I have heard this this criticism of Pallister that it's not you know Elliot it's not someone who's been around
01:29for longer that you're a newer kid on the block and therefore why would companies engage with you as much
01:34as as others. Is this an issue that you find yourself. What do you what do you say to that
01:38type of criticism.
01:40I think there's certainly an element of that and I think it is important to explain to the company or
01:48ideas clearly and I'm a great believer a good idea a little bit to your colleagues point on the panel.
01:54It will fulfill itself and ideally all these engagements would be private they would be collaborative and you would be
02:03giving a management team idea that they can make their own.
02:07You know unfortunately you do have instances where it moves beyond that but certainly in a number of markets that
02:13we focus on we've had great success on the private side of things.
02:18But I think Danny is there is the quality of the idea that really develops the brand and the awareness
02:24that what you're suggesting is sensible.
02:26So James you're trying to exist in the sweet spot of unlocking other value be it AI from Toto some
02:33of the semiconductor things.
02:35What's what's next on the agenda for you. What are you scouring and looking for more campaigns.
02:41Look I think there are there are a bunch of companies we're still invested in you know big ones the
02:46likes of LG Chem of Japan Post where we think there's a considerable upside and we continue to engage constructively
02:53with with management teams.
02:55There have been a lot of moves in stock prices in the software space and it requires some time and
03:02some thought and some careful analysis.
03:05But our sense is that there will to be value in some of those names. And even if it's if
03:10it's just an improvement in capital allocation really just returning capital shells through buybacks.
03:17We we think there's quite a lot of scope in that particular area. But again it's very important to proceed
03:23with caution and analyze things carefully.
03:26So if it is software companies are you looking for ones with moat streams or is it more of a
03:32quick hey this is a quick fix.
03:33They just need to return some capital. Look I think ideally you would be identifying companies with with moats with
03:41strong competitive barriers.
03:43Of course in the environment we're in with the proliferation of AI that is quite a complicated thing to assess.
03:49It really becomes kind of company by company really doing a deep dive into their business understanding what they do
03:56how they do it whether for example they have proprietary data and so on.
03:59And really developing confidence that they have that strength in the business to withstand new entrants and pressures driven by
04:08AI.
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