Got a question on a high-growth investing strategy, commodities or emerging markets? Here's something different: Ask a hedge fund manager.
Rohit Sehgal, chief investment strategist at Goodman & Co. Investment Counsel Ltd., took your questions online. He also runs the $596-million Dynamic Power Hedge Fund, which plunged 72 per cent in 2008 and then gained 159 per cent last year. The fund has returned 25 per cent annually over five years.
To see the discussion, click on the live blog box below.
Read more about Rohit Sehgal:
With over 40 years of experience, Mr. Sehgal's growth style uses both top-down macroeconomic analysis and bottom-up fundamental research to capitalize on early stage growth opportunities and protect capital in down markets.
Mr. Sehgal joined Goodman & Co. in 1998. He received an honours degree in economics from Delhi University and earned his Chartered Financial Analyst designation in 1974.
Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any mutual funds managed by Goodman & Company, Investment Counsel Ltd. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell, nor should it be considered as an indication of how the portfolio of any mutual fund managed by Goodman & Company, Investment Counsel Ltd. is or will be invested.
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Leslie Erdosy writes:
What is your take on inflation and its effects on gold?
There are many ways to look at inflation. If you look at inflation driven by wages, I don't see any serious threats because of high unemployment. We could see inflation in commodities, like foods and other basic commodities because we see very strong supply and demand fundamentals on a long term basis.
Gold may also benefit from this.
David Gillanders writes:
my question is regarding the Emerging Markets. We've been hearing lots in the news over the last few months about the incredible tear the economies of (especially) the BRIC countries have been on. Lately they seem to be having a hiccup. What are your thoughts about these markets and what they might be doing between now and, say, five years down the road? Also, what about Japan? Is it getting back on it's feet? How is it's outlook?
Yes, we are seeing a correction in the equity markets in emerging countries. More recently, China preempted the very fast growth in loans by raising bank reserve requirements. We think this is positive because economies in those regions have been accelerating and there is a risk the growth could become unmanageable.
So, the risk in those economies is more in the management of growth, particularly as the central banks have an eye on their domestic inflation rates.
Secular growth trends for emerging economies remain very strong. BRIC economies, we believe, will have a much larger share of world GNP.
Japan is not our focus, but a weaker Yen may help their economies in the short term.
Alex Lee writes:
With the world having a larger population year by year, how long can commodities keep up with this growth?
We think it will be a challenge for some commodities to keep up with the demand, which makes a bullish case for commodities generally, in the long term. We like energy and some bulk commodities, like fertilizers, coal and iron ore.
[Comment From Robert Graham]
I am curious as to why Petrominerales, Petro Rubiales, and Alange are favourites from Colombia, and Gran Tierra isn't? What is it about GTE you don't like?
I'm not as familiar with the GTE management team.
[Comment From chris]
In light of the recent weekness in the equity marekts, have you been lightening up on positions, holding, or adding?