Research and Analysis

The Macro View

In carrying out its comprehensive program of global investment research and security analysis, Blue Square Group follows a disciplined approach that begins with the macro view of developments affecting global investing which ultimately focuses our attention on those regions, and industries, that offer above-average investment potential. In the global economy of the 21st Century, one cannot ignore the obvious – and not so obvious – dynamics that can cause one region to significantly affect another. No major industry or economy can be viewed in isolation from global trends and events without potentially entailing increased risks. Political and Trade decisions taken at the highest levels in Washington, Beijing, Berlin, Tokyo, London, and elsewhere can have far reaching implications for various aspects of the global economy, and for particular industries so affected.

We believe it is imperative to thoroughly understand an industry and its growth outlook against the background of global trends before focusing on individual members of that industry. We delve deeply into those industries that stand out in terms of expected growth and proceed to meticulously research the companies that comprise the industry with a view to identifying the “best-of-breed”, i.e. those instances where a company displays superior strength and growth prospects relative to its industry sector. Of course, it is also necessary that our “best-of-breed” candidate be undervalued relative to its industry peers; only then can we classify the stock as being a Special Situation.

Our Research and Global Market Intelligence efforts at Blue Square Group closely follow emerging economic and industrial trends throughout the world, ensuring that we remain focused upon those sectors that offer superior performance potential in the foreseeable future. In that regard, the first decade of the 21st Century has seen a paradigm shift in global economics and business that have brought about dynamic investment trends never before seen, and these emerging trends demand an outside-the-box approach if one is to achieve superior investment performance.

Special Situations

BSG’s disciplined approach guides us to first identify the most attractive industries in the most promising geographical locations, and to then seek out the companies whose shares can clearly be termed “Special Situations”, e.g. undervalued low profile companies having a strong growth trajectory that can be expected to capture attention as their superior results come increasingly to light. And finally, these attractive investment candidates are assessed against the current investment background, to ensure that the prevailing investment environment is well suited to such situations, i.e. that the particular stock market sector is currently “in play”. Timeliness in identifying such Special Situations is paramount; in due course, such extraordinary stock market opportunities are discovered by the “Street” and ultimately become recognized stock market darlings.

The Blue Square Dispatch

Each month, Blue Square Group publishes an overview of global economic, industrial and political developments as well as our considered investment views that have been distilled from our ongoing research and market intelligence activities. The Dispatch focuses on relevant topics that our analysts judge to be particularly noteworthy at that time, such as early detection of emerging trends, or our analysis of long term “big picture” trends and their relevance to certain investment sectors or even specific companies or investments. Clients will see timely analysis of economic developments, stock market performance, industry trends and, when appropriate, portfolio balancing advice. By reading the latest issue of the Blue Square Dispatch, clients can be assured of having a timely grasp of the global investment environment.

Foreign Exchange

If carried out properly, FOREX hedging can be a valuable tool for managing foreign exchange risk but, if such hedging is not implemented properly, it can result in unexpected investment losses. Only investors having experience and a firm grasp of the many intricacies of foreign exchange should consider applying sophisticated hedging strategies.

Purchase of foreign stocks entails the assumption of a degree of foreign exchange (FOREX) risk, which is in addition to the normal investment risk that must be assumed when buying any stock. The exchange rate between any two currencies can fluctuate significantly over time and have a material positive or negative effect on overall performance of the foreign investment security held. Placing a FOREX hedge, executed properly, allows one to manage, or mitigate, foreign exchange risk.
For the convenience of clients who hedge exposure to various currencies in their investment portfolios, the following FOREX table tracks fluctuations in the world’s most popularly traded currencies.

Additional Resources

The following resources are provided for the convenience of all clients and visitors to our website. While the information provided via the following links is believed to be accurate, Blue Square Group Limited cannot accept responsibility for the accuracy or appropriateness of any third party information.

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