Why this stock picker lives for the hunt (and the big opportunities she's targeting)

Livewire is a platform driven by insights rather than individuals. And while I wouldn't normally focus on the traits of an individual fund manager, it's hard not to be drawn in by the energy of Munro Partners' Partner and Portfolio Manager, Qiao Ma. 

As you will see in the Rapid Fire video below, Ma "lives for the hunt" - that is, seeking out new and worthy opportunities - although she also points out that her job is to deliver results for investors. 

When operating in the small-and-mid-cap (SMID) space, where Ma notes just about every company is doing something exciting and innovative, it pays to have a curious mind. 

How is Ma seeing the space right now? Despite markets at all-time highs, she is still seeing plenty of opportunity because the rally has been quite narrow and compelling opportunities at attractive prices remain. 

In the following Rapid Fire, Ma also peels back the curtain on the hot topic of debate in the Munro war room right now, and the area of opportunity that has her most excited in the SMID space. 

In the coming days, we will be releasing a longer-form interview with Ma, diving deeper into how she is seeing markets and some of the opportunities she has been pursuing lately. 

Note: This interview was taped on Monday 27 May 2024. 

Edited Transcript

Chris Conway: Qiao, thanks for agreeing to do a quick Rapid Fire with Livewire.

Qiao Ma: Of course.

Chris Conway: First question. What's the biggest issue being debated in the Munro War Room right now?

Qiao Ma: The biggest issue is where and how many applications AI is going to get into. We sort of get the answer that it's going to go everywhere, but just which one's going to go first, which one's going to be the big one, that's the big debate.

Chris Conway: Do you expect inflation to remain stickier than the market expects? Yes or no?

Qiao Ma: No.

Chris Conway: What is the area of opportunity that has you most excited in the SMID space right now?

Qiao Ma: Power. So, we are running out of power at quite a rapid pace. So a lot of these very old industrial companies that are overlooked, that have not really been talked about for a long time, they're actually going to be enablers of a really, really large global trend.

Chris Conway: What is one under-the-radar company that is doing something unique or innovative that has you excited right now?

Qiao Ma: That pretty much describes the entire portfolio of our Munro SMID companies. By definition, all 28 of them are doing something pretty creative and unique.

Chris Conway: Okay. Given markets are at ritzy levels, how hard or easy is it to find opportunities right now?

Qiao Ma: It's still quite easy. Just as we talked about, the rally has not been a broad one. So it was really run and propelled by a number of large stocks, and there are still tonnes of opportunities that keep us very busy.

Chris Conway: Qiao, I've seen you light up at the idea of hunting for opportunities, so I'll ask you this question. As a seasoned stock picker, what gives you more joy, the hunt or the reward?

Qiao Ma: It's a really trick question because clearly, my job is to deliver the reward to the investors, but I live for the hunt.

Chris Conway: Right. Thank you so much for sitting down with Livewire.

Qiao Ma: Thank you for having me.

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The Munro Global Growth Small & Mid Cap Fund has delivered 38.6% since inception (31 October 2023) to 31 May 2024. Past performance is not a reliable indicator of future return.