Globalization has been an integral part of the global economic system for decades, but fund manager Dan Katz believes its unraveling could reshape the global economy. He tells CNBC how he’s navigating the new economic order. “The story of the last 30 years has really been a story of increasing globalization and efficiency throughout the economy. What we’ve seen as a result of the shocks of recent years is that the efficient system was actually very vulnerable and very fragile,” Katz told CNBC’s “Squawk Box Europe” on Thursday. Now, he said, de-globalization, increasing resilience of business models and growing security of supply chains may be the major secular drivers of change in the global economy.”It affects all industries. It’s not just about resources, it’s not just about technology. It’s affecting all areas,” he added has been plagued by severe supply chain disruptions since the start of the Covid-19 pandemic.Prior to the pandemic, the global supply chain was optimized to efficiently meet the needs of just-in-time manufacturing.But port delays, transportation bottlenecks and rising freight rates during the pandemic almost brought the system to a standstill Against this background, political There is increasing demand from decision makers and companies alike to reverse globalization and accelerate the transition to localized or more regional supply chains. A trend Katz, co-founder and portfolio manager of Amberwave Partners, is capitalizing on. “We’re really looking for companies with relatively more secure supply chains and more resilient business models that will be able to better manage some of these geopolitical forces,” he said. He believes business models with less reliance on global supply chains will fare better, especially when a recession hits. One stock Katz says seems particularly well positioned is Florida-based The Mosaic Company, which makes concentrated phosphate and potash. US Economy Slowing Down On the macro front, Katz believes the US economy is “undeniably” slowing down at the moment. “It’s possible we’re in a technical recession, but we really believe that the bottom of economic activity will probably be nine months away once monetary tightening actually hits the real economy,” he said. Katz pointed out that the market is still pricing in some earnings growth this year, but he expects the economy to see some adjustments in earnings growth once the impact of monetary policy is felt. However, Katz said he was relatively unconcerned about the possibility of a recession given his fund’s longer-term prospects and attempts to profit from secular trends. “We’re really long-term investors looking to capitalize on sustained outperformance over time, because that’s where you’re really going to build wealth in your portfolio by consistently generating alpha over time,” he said.
https://www.cnbc.com/2022/06/27/how-fund-manager-dan-katz-fund-manager-is-trading-deglobalization-.html How fund manager Dan Katz is dealing with deglobalisation