James Rodda, portfolio manager of Antipodes Partners’ global small and mid-caps fund, oversees a firm managing over $20 billion in assets. Antipodes Partners is a global investment manager offering a range of investment strategies. The firm focuses on delivering long-term returns for its clients through a value-oriented approach.
Rodda spotlights GCC, a Mexican-listed cement producer, as a top 10 holding. He notes its strategic advantage with inland US cement plants, insulating it from coastal imports, leading to sustained pricing power and superior return on invested capital. The completion of a new Texas plant is expected to boost free cash flow yield to around 13 per cent. Rodda points out that the stock trades at double the free cash flow yield of its US peers, positioning it well to benefit from US investment cycles.
Rodda also mentions Semrush, a New York-listed company specialising in search engine optimisation (SEO) software. Semrush helps website content gain organic traffic without paid ads. He believes Semrush is poised to transition from a perceived loser in the rise of AI to an AI winner, emphasizing its leadership in SEO and early entry into AI optimisation for platforms like ChatGPT and Gemini. The stock is currently trading at 15 times its next 12 months price-to-earnings ratio, excluding cash, and is still growing nearly 20 per cent.
Antipodes Partners is launching an active ETF version of its fund on the ASX next month, offering investors access to its curated portfolio of small and mid-cap opportunities. Rodda advises investors to consider global opportunities beyond the ASX, noting that many top-performing stocks are found internationally. He cites Peter Lynch’s book One Up on Wall Street as a key influence, emphasizing the importance of understanding products deeply and focusing on evolving customer trends.