The inevitable rise of agtech and how to play it

The inevitable growth of agtech, with its $300bn market growing at 7% CAGR, should not be overlooked. Companies in the industry offer attractive returns in excess of the cost of capital, consistently outperforming across the cycle. Dan Waterman delves deep into the market and identifies companies positively exposed to agtech themes, including ACGO, Deere, Genus, Zoetis, Darling Ingredients and Novozymes. Expect agchem manufacturers to feel the pressure in the face of increasing regulation, including BASF, Bayer and Nufarm.

- 21 January, 2022

Deere & Co. (DE)

Industrials

Copley Fund Research

ESG-shaped recovery - DE is now owned by 15.8% of Global Managers (from a low of 5.4% in 2019). Steven Holden’s analysis highlights the extent to which the ownership base in DE has evolved over the last decade. Historically, DE had been bought and sold quickly (only ever held by 20-40 funds at any one time). However, 2021 was a breakout year, with 59 funds currently holding the stock, it has certainly changed the ownership dynamic, and with ESG a strong part of the investment case (8 of the top 25 holdings are held by ESG focused strategies), perhaps more funds will take note.

- 07 January, 2022

Agricultural tech offers a promising ESG investments

Investors should not miss the exciting opportunities emerging in agritech, according to Dan Waterman. The growing $300bn market, with its 7% CAGR offering and attractive long-term returns, will be pushed higher and higher as regulatory and consumer pressure heats up. Recommendations include Deere, Genus, SalMar, Schouw, Darling Ingredients and Verbio.

- 10 December, 2021