The sharp depreciation of the Japanese yen has fuelled a rally in Japanese value stocks. Comgest has consistently warned that this value rally is underpinned by fragile, cyclical drivers that could quickly reverse. In this investment letter, we explain why we believe quality growth companies, supported by strong balance sheets and consistent earnings growth are better positioned to deliver sustainable outperformance.

The AI boom has concentrated global equity markets in a few US tech giants, but as long-term investors Comgest focuses on building resilient, diversified portfolios through an unconstrained approach that targets quality growth across sectors and geographies.

As the US equity market continues to evolve, Comgest remains focused on companies with enduring quality and discipline—like Oracle and Netflix—that support long-term growth. In this investment letter, our US Equities investment team explains how our collaborative, bottom-up approach targets resilient businesses with competitive advantages that compound value over time.

Digitalisation, cloud computing, and AI are driving global data centre expansion. Big tech companies need more computing power for their AI services, increasing data centre infrastructure and environmental impact. In this investment letter, Comgest ESG Analyst Liudmila Strakondonskaya emphasises the need for effective governance and decision-making to balance AI growth with ESG considerations.

Is a stock at 12x earnings really a bargain? Not necessarily. In this thought-provoking piece, Comgest CIO and Portfolio Manager Franz Weis challenges the conventional wisdom around valuation metrics. He explains why long-term success comes from quality growth and earnings visibility — not chasing cheap-looking stocks. Discover how avoiding the “value trap” is central to Comgest’s Quality Growth investment philosophy.

Investors often focus on tangible assets like inventory and machinery, but human capital—employee knowledge, skills, and experience—is oftentimes undervalued. French leather goods company Hermès exemplifies how human capital is the quiet force behind long-term success.