Investment Articles & Insights

You may think of momentum as a basic strategy that involves buying whatever has gone up most recently. That would be unfair, though.

April confirmed what markets had begun to suspect: the global macro backdrop has changed. Higher geopolitical risk is now structurally entrenched. Markets have quickly adjusted to this unfortunate new reality across all asset classes. Geopolitical risk has reasserted itself as a primary driver of energy prices, inflation expectations, and capital flows. Investors still anchored to the old world of low inflation, cheap money, and frictionless globalisation risk being structurally mispositioned.

By now, most of us have realised that the US-Israel-Iran war will have longer-term consequences beyond recent volatility. It’s accelerating a structural shift in global markets defined by tighter energy supply, more persistent inflation, and the fragmentation of trade and capital flows.

While Collins Foods (“Collins”) may not be a household name, step inside a KFC restaurant somewhere in Australia and you have a one-in-three chance of being in a Collins-run establishment. The company opened its first Australian KFC location in 1969. After four decades of expansions, diversifications, restructurings, and a stint under private equity ownership, Collins listed on the ASX in mid-2011. Since listing, its Australian KFC business has grown substantially.