The Long View Brian Selmo: ‘Winning by Not Losing’
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Jul 15, 2025 Brian Selmo, portfolio manager and research director at First Pacific Advisors, shares invaluable insights on navigating today's financial landscape. He discusses the importance of diversification and emphasizes investing in quality businesses over macro predictions. The dynamic of healthcare investments post-COVID is explored, alongside the potential of AI in this sector. Selmo also delves into emerging markets and the advantages of private market investments, while highlighting the crucial role of effective communication to maintain investor confidence during downturns.
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Healthcare's Long-Term Promise
- Healthcare sector is undervalued and presents opportunities especially in picks and shovels businesses aiding pharma innovation.
- AI is expected to enhance drug development pipelines, supporting long-term healthcare optimism.
Limited Emerging Markets Exposure
- Emerging markets offer fewer scaled, high-quality businesses with suitable shareholder alignment and regulatory environments.
- Exposure is better gained through multinational companies rather than direct investment in many EM firms.
Manage Currency Risk Thoughtfully
- Carefully assess currency risk on a company basis by evaluating revenue, cost, and balance sheet mismatches.
- Hedge currencies only when strongly unattractive; otherwise maintain exposure for diversification benefits.
