![ALT_TAG](http://www.financialexpress.net/cms/Photos/Editorial/People/E/Edelsten_Simon_large1.jpg)
Demographic growth in Asia, the globalisation of media content and mobile data, and e-commerce are three of the global themes he finds particularly compelling.
“Most companies have to compete in a globalised world,” he said. “So if a company is making healthcare costs lower, for example, traditionally healthcare was a local industry, but now you are selling all over the world.”
Here are the only four stocks he holds in the UK – making up 6 per cent of the portfolio – which he thinks are the best options for accessing long-term themes.
HSBC and Prudential
Two of Edelsten’s UK stocks are Asia-facing. The manager says that being contrarian is the only way to outperform over the long-run and that buying into Asian growth is something that investors have become unduly sceptical about over the past year.
“Prudential has done very well despite the problems in emerging markets,” he said. “They have proved that despite recession, you can do very well.”
Data from FE Analytics shows that the stock is up 24.12 per cent over one year, despite the problems in its major markets in Asia.
Over the same period, the FTSE All Share has made just 8.2 per cent while the MSCI Asia Pacific index has made 8.17 per cent.
Performance of stock vs indices over 1yr
![ALT_TAG](http://www.financialexpress.net/cms/Photos/Editorial/0.%202014_Article_charts_&graphics/20140320_fourglobal0.png)
Source: FE Analytics
Chief executive Tidjane Thiam has recently claimed that western fears of a prolonged crisis in Asia are built on ignorance, reporting a 17 per cent increase in operating profits last year largely off the back of Asian growth.
Edelsten says that HSBC is another well-run business that is undervalued because of fears over the future of Asia.
“People are hugely sceptical of their emerging markets business despite the fact the bank is enormously conservative,” he said.
“There isn’t a bank as well run as them.”
HSBC trails the FTSE over three- and one-year periods, having lost 11.92 per cent over 12 months.
Performance of stock vs indices over 1yr
![ALT_TAG](http://www.financialexpress.net/cms/Photos/Editorial/0.%202014_Article_charts_&graphics/20140320_fourglobal0B.png)
Source: FE Analytics
Although Edelsten says he has trimmed his exposure to the theme of Asian consumer growth over the past year, it is still one he is backing in the longer run.
ITV
Edelsten admits that ITV can no longer be seen as cheap after its recent strong run, but says it is still worth backing for growth.
The stock is up 143.88 per cent over three years while the FTSE All Share has risen 32.66 per cent, according to data from FE Analytics.
Performance of stock vs index over 3yrs
![ALT_TAG](http://www.financialexpress.net/cms/Photos/Editorial/0.%202014_Article_charts_&graphics/20140320_fourglobal1.png)
Source: FE Analytics
“We are half-way through a UK advertising recovery story,” Edelsten said.
“It’s not investors buying in the depths of the panic in 2009 at 50p – it’s now £2. You are buying a cyclical stock more than half-way through the cycle.”
Edelsten says that the company has done a good job of cutting costs and reducing debt, and he also identifies the coming World Cup as a catalyst for growth this year.
The World Cup should see greater advertising spend from companies wanting to display their messages in front of the huge expected audience, he says.
Edelsten is using this stock as a play on growth in global media content – ITV has been hugely successful in recent years at selling drama abroad.
Time Warner and Disney are two ex-UK stocks he is using to play this trend.
Experian
“One that has been going down because of emerging markets is Experian, which has one quarter of its business in Brazilian credit agencies they have bought,” Edelsten said.
Experian has fallen 7.44 per cent over one year while the FTSE All Share has risen 8.2 per cent, according to FE data.
Performance of stock vs index over 1yr
![ALT_TAG](http://www.financialexpress.net/cms/Photos/Editorial/0.%202014_Article_charts_&graphics/20140320_fourglobal2.png)
Source: FE Analytics
However, Edelsten says that credit checking is required by banks and other institutions in Brazil in particular, and the company should be able to generate strong growth in that region.
It is the world’s leading company in the field, he adds.