By Jon Gripshover
The last two hurricane seasons have been devastating, but for Fraser Management Associates LLC, they've also been a great time to invest.
"At Fraser, we follow a contrarian philosophy that means we explore trends (that are) overlooked and under-appreciated," said Len Davenport, senior portfolio manager at Burlington, Vt.-based FMA, which manages money for institutional and private investors.
One of those trends is global climate change. According to Evelyn Browning Garriss, editor of the Browning Newsletter — which explores the connection between the earth's climate and business — and a climatologist who works with FMA, the world undergoes multidecade temperate conditions, and we're heading into 25 to 30 years of turbulent weather.
By understanding the trend, FMA determines what companies will benefit financially from adverse weather circumstances, according to a news release.
"For example … we have been studying companies involved in infrastructure repair, construction supply manufacturing and generator manufacturing, as their business would increase dramatically in a rebuilding and recovery environment," explained Alex Seagle, principal, in the release.
FMA has identified other trends it expects to be profitable, including Hispanic migration to the United States, fresh water scarcity, consolidation in the financial services industry, alternative and renewable energy sources, and issues affecting the aging baby boomer generation.
