Three top stocks set to thrive after the turmoil
Professional investor Ed Wielechowski of the Odyssean Investment Trust picks three companies that should benefit from the current market situation.

“May you live in interesting times.” This apocryphal Chinese curse springs to mind when looking at today’s equity markets. The initial wave of the Covid-19 virus may have peaked in Europe and the US, but the longer-term trajectory of the disease and its economic impact remain highly uncertain. Throw in geopolitical tension between China and the US and a Brexit deal still to be agreed, and “interesting” seems an understatement.
Investing against such a backdrop can be a challenge, but it also offers opportunities. At Odyssean we aim to exploit these by retaining a focus on our core philosophy – backing high-quality businesses where engagement can improve returns – and identifying companies that benefit from the current market situation.
Finding oversold first-rate cyclicals
When cyclicals sell off, investors need to judge the timing of a rebound and appropriate entry valuations. These are not easy questions to answer. We take comfort in backing market leaders at valuations supported by significant real assets. Elementis (LSE: ELM) fits this bill.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The company is a leading producer of speciality chemicals sold into a broad range of industrial and personal-care end markets. The group enjoys strong market positions with access to unique mineral assets underpinning differentiated, premium products.
The group should benefit from a cyclical recovery in demand after the virus, while synergies from recent mergers and acquisitions and targeted cost savings of $15m will help too. The shares trade on a price/book ratio of just 0.5 compared with a five-year average of 1.8, suggesting significant value.
Profiting from uncertainty
We also seek out companies that should emerge as winners from the current market disruption. Looking beyond the obvious, direct winners (such as online retail) we like are firms we think capable of gaining market share in uncertain times. Volution (LSE: FAN) falls into this category.
Volution is a leader in domestic and commercial ventilation equipment. The company has leading positions across the UK, Europe and Australasia in a growing market. Energy-efficiency standards are driving increased ventilation spend per property.
As a well-capitalised, larger player in a fragmented market, Volution should benefit from turbulence in the sector. Its ability to maintain supply and inventory should allow it to gain market share and its access to capital means it could buy up distressed smaller players.
Growth stocks that can move up a gear
Finally, high-quality businesses in growth markets led by capable managers that could improve overall performance are highly appealing, but rare, investment opportunities. SDL (LSE: SDL) is an example.
It is a leading global provider of translations services and related software tools. The company serves blue-chip corporate clients in a market growing at a mid-single digit rate as content volumes grow exponentially.
SDL boasts a high level of recurring sales, plenty of scope for improving margins, a record of accretive bolt-on acquisitions, a strong management team and a healthy balance sheet. It’s a long-term story we would like whatever the market conditions.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Ed joined Odyssean in December 2017 as a fund manager. Prior to joining Odyssean, Ed was a principal in the technology team at HgCapital. He joined HgCapital in 2006 and worked on numerous completed deals, including multiple bolt-on transactions made by portfolio companies. He has additional quoted market experience having led all aspects of the successful IPO of Manx Telecom plc in 2014 as well as having evaluated and executed public to private transactions.
Ed started his career as an analyst in the UK mergers and acquisitions department of JPMorganCazenove in 2004.
-
Government launches full review of parental leave and pay – what could it mean for you?
The government wants parental leave to be fairer - will its shake-up fix the widespread problem for families?
-
Nationwide: House prices see biggest monthly fall in over two years
UK house prices dropped by 0.8% in June, according to Nationwide. We reveal the top-performing and worst-performing regions
-
Carson Block on short-selling and what investors should watch out for when going long
Interview Renowned short seller Carson Block talks to Matthew Partridge about his specialism and where to go long
-
Investors can buy into tomorrow’s top global technology stocks today
Opinion Anthony Ginsberg, manager of HAN-GINS Tech Megatrend Equal Weight UCITS ETF, highlights three technology stocks as he tells us where he'd put his money
-
Drinks maker Diageo gets back on its feet – should you invest?
Diageo has faced one disaster after another over the past two years. Is it finally time to buy?
-
'Seeking out quality and resilience will pay off for patient British investors'
Opinion Gary Channon, chief investment officer of Phoenix Asset Management Partners, and Kartik Kumar, member of the Investment Team, select three stocks
-
Airtel Africa is dialling the right numbers – should you buy?
Opinion Mobile phone services group Airtel Africa is inexpensive and growing fast
-
The British railway industry is in rude health – here's why investors should jump aboard
The railway industry has bounced back from the devastating impact of the pandemic and is entering a new phase of development – and profitability
-
Infrastructure investing: a haven of stable growth amid market turmoil
From booming construction in emerging markets to digital and green transitions, the infrastructure sector offers security, returns and long-term opportunities
-
Resilient and profitable performers will excel in the era of deglobalisation
Opinion James Harries, co-manager, STS Global Income & Growth Trust, selects his favourite stocks as he shares where he'd put his money