Philippines & Indonesia Had a High ‘Dream Factor’

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Philippines & Indonesia Had a High ‘Dream Factor’
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London Value Investor Conference 2022: Chris Hohn On Making Money And Saving The World

business activist 1653311320Chris Hohn the founder and manager of TCI Fund Management was the star speaker at this year's London Value Investor Conference, which took place on May 19th. The investor has earned himself a reputation for being one of the world's most successful hedge fund managers over the past few decades. TCI, which stands for The Read More

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  • We consider five components of stock market return: Inflation, dividend yield, real book-value growth, share dilution and the “Dream Factor”
  • The “Dream Factor” could be thought of as the residual, the part of the market return that can’t be explained by the other four fundamental factors
  • “Dream Factor” is the portion of return driven only by re-rating of multiples
  • During bull markets, the “Dream Factor” is generally high but usually negative in bull markets and market crashes
  • Overall in Asia, on average during 2004-2016 (including the global financial crisis in 2008-2009) the “Dream Factor” did not contribute to return
  • In the two highest returning markets Indonesia and the Philippines, the “Dream Factor” contribution was also the highest

 

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