Translation to English

“Strong Earnings Continue for US Companies ... Keep an Eye on Value Stocks”

Taesung Kim for Maeil Business Newspaper
January 21, 2024

• Chinese Corporate Performance Unknown

• Like a Huge Black Box

• 19% Portfolio Return Last Year

• Thanks to Active Investment in the US

"Last year, tech stocks significantly drove the stock market, but this year, we expect to see more recovery in non-tech and value stocks," said Mark Tetto, co-CEO of the Israeli private investment company TCK Investments. In a recent interview with Maeil Business Newspaper, Tetto said, "I still see room for growth in the US" and "US corporate earnings will continue to be strong."

However, he emphasized that investment opportunities should be sought in non-tech and value stocks, which have stable earnings but enough room for growth, rather than in the tech sector, which may slow down if the current high-interest-rate environment changes.

Regionally, Tetto highlighted the importance of focusing on the United States and South Korea while being cautious about China. He stated, "South Korea's position is still rising," and "China is like a huge black box, making it very difficult to know the actual performance of its economy and companies."

He also pointed out that recent Chinese real estate and stock market downturns are reasons to avoid investing there.

TCK Investment has been a topic of discussion in the asset management industry due to its remarkable performance amid the volatility of domestic and international investment markets last year. Founded in 2012 by Chairman Ohad Topor, and with bases in Seoul and London, TCK Investments provides global investment advice and customized investment management services to top asset owners, major corporations, and foundations both domestically and internationally.

Tetto said, "Creating the best global standard portfolio for our clients has led to good results," and "I receive many calls from clients who are surprised and pleased with the high returns."

The company's Growth Model Portfolio (GMP) for TCK’s discretionary clients yielded a 19.4% return in 2023, exceeding TCK Investment's annual target of 8-9%. The cumulative return of this portfolio since its inception in 2013 until last year is 136.3%.

Regarding the secret to their record-breaking earnings, Tetto said, "Many economists were pessimistic about the global economy at the beginning of last year, but we saw high growth potential in US companies and believed that the Federal Reserve (Fed) had the ability to stabilize inflation, leading us to actively invest," and "Capturing opportunities in the Korean stock market last year and increasing exposure to Korea also had an impact."

Tetto is a financial expert with over 15 years of experience in corporate finance, mergers and acquisitions (M&A), private equity (PE), and venture capital (VC) investments. He has worked in the investment banking division of Morgan Stanley in New York and London, handling M&A and corporate finance, and later led corporate acquisitions for the corporate M&A team at Samsung Electronics.