Playing politics – how proactive political analysis can shore up short-term investment strategies
2013-2014 was one of the most challenging periods in recent memory for the Indian economy, but it was one of the most profitable for Indian conglomerate Larsen & Toubro. Driven by its investment philosophy and an acute understanding of the country’s political and economic standing the treasury was able to generate an alpha of approximately 2.5% on investments worth US$1 billion. An increase from the two previous years when markets in emerging economies, such as India, were relatively calmer.
So while we all know that the corporate treasury must have one eye at all times on the political and economic landscape of those countries in which it has operations, do treasurers know how to use information proactively as well as reactively? In this webinar we hear how Larsen & Toubro did exactly this and proactively analysed the political and economic landscape. Using this information to reinforce its short-term investment philosophy and make informed decisions that saw it outperform its expected rate of return and largely avoid any adverse impact from the turbulence affecting the Indian economy.
This webinar was held on Wednesday 24th June 2015.