With a strong foothold in emerging markets and a sharp eye for strategic trends, Shiraz offers a thoughtful perspective on building portfolios designed to withstand shocks while capitalising on opportunities. From liquidity management to navigating emerging market risks, his approach underscores the importance of diversification, flexibility, and preparation.

How do you approach building resilient portfolios in a world full of economic and geopolitical shifts?

Resilience is all about diversification and flexibility. We focus on ensuring our portfolio isn’t overly reliant on any single sector or region. For example, during the Asian financial crisis, we learned the importance of having assets spread across various geographies. Today, we maintain a global view, investing in areas such as healthcare, infrastructure, and technology, all while staying attuned to potential risks in specific regions. A resilient portfolio can absorb shocks while still delivering consistent returns.

You mentioned the Asian financial crisis. What are the key lessons from that experience that guide your decisions today?

The crisis taught us to never underestimate the importance of liquidity. Companies with strong fundamentals can fail if they don’t have access to cash when they need it. So, we prioritize liquidity management, ensuring we always have enough capital readily available to respond to market downturns or seize unexpected opportunities. Another key lesson was the value of maintaining long-term relationships. During crises, partnerships can provide the support needed to navigate challenges successfully.

Liquidity is often underestimated. How do you manage liquidity effectively across your portfolio?

We actively manage cash flows to ensure we have enough liquidity to meet short-term needs without compromising long-term growth. This means maintaining a balance between liquid assets, like equities and bonds, and illiquid ones, like private equity or real estate. In times of uncertainty, having cash on hand provides us with the agility to pivot quickly, whether that’s to capitalize on new opportunities or protect against downside risks.

Emerging markets offer growth potential but also come with heightened risks. How do you balance these opportunities with the risks?

Emerging markets are where you’ll find some of the fastest growth, but they’re also where risks are most pronounced—currency fluctuations, regulatory changes, and political instability. Our approach is to do deep, on-the-ground research. We partner with local experts who understand the nuances of the markets we’re entering. Additionally, we diversify within emerging markets to avoid overexposure to any single country or sector. Risk mitigation is key, but so is being bold enough to seize opportunities when they arise.

Are there any specific sectors or regions in emerging markets that you’re particularly excited about?

Healthcare in Southeast Asia is a prime focus for us. The region’s growing middle class and ageing population create a strong demand for advanced healthcare services and infrastructure. We’re also keeping a close eye on renewable energy projects in South Asia, where governments are pushing for sustainable development. These sectors not only offer promising returns but also align with our commitment to creating a positive social impact.

How do you see geopolitical tensions shaping investment strategies over the next few years?

Geopolitical tensions are likely to remain constant, and they will continue to shape investment decisions. It’s crucial to be nimble and adaptable. We stress-test our portfolios against various geopolitical scenarios, from trade wars to regional conflicts, to ensure we’re prepared. It’s also vital to keep an eye on policy shifts, as they can significantly impact market dynamics. Despite the uncertainties, geopolitical shifts often present unique opportunities for those who are well-prepared and well-positioned.

What advice would you give to investors looking to build resilience into their portfolios in today’s environment?

First, prioritize diversification—not just across asset classes but also across geographies and sectors. Second, never overlook the importance of liquidity. It’s the lifeline that allows you to weather downturns and act quickly when opportunities arise. Lastly, take a long-term view. Markets will always be volatile in the short term, but those who stay the course and remain disciplined will be rewarded over time.

Conclusion

Shiraz Poonevala’s insights serve as a powerful reminder that resilience in investing requires a blend of strategic diversification, vigilant liquidity management, and a deep understanding of both risks and opportunities. As global markets continue to evolve, the principles he outlines are more relevant than ever. For investors seeking to navigate uncertainty with confidence, Shiraz’s approach offers a blueprint for success.

Call to Action

Shiraz is the Director of Investments at GP Group, Visit their official website at: https://www.premjee.com/

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