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.
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.
-
Can the House of Lords change the government’s mind on controversial inheritance tax reforms?
The House of Lords has launched an inquiry into inheritance tax changes on pensions and agricultural property relief - can the government’s plans be stopped?
-
Nationwide Building Society launches £175 switching deal – who is eligible?
Nationwide Building Society has launched a new current account switching deal. We look at whether you are eligible, and how to get the free cash.
-
Small UK industrial stocks are hidden gems
Opinion Ed Wielechowski of the Odyssean Investment Trust highlights three of his favourite British small-cap industrial stocks
-
Aurora Innovation is running on empty – is it overvalued?
Aurora Innovation, a maker of self-driving trucks, may have promised far more than it can deliver
-
'Ride the recovery in emerging markets': Gustavo Medeiros of Ashmore Group tells MoneyWeek
Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
What is the Enterprise Investment Scheme and should you have one?
The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
The alcohol industry is suffering as consumers sober up – is it still worth investing in the sector?
Changing consumer tastes are rocking the alcohol industry, but the best players are adapting their strategies. Buy them while their shares are still cheap
-
A strange calm in credit
Corporate bond markets remain remarkably relaxed, with yields that offer little compensation for risks
-
'The City's big bet on green finance fails to pay out'
Opinion Insurers and banks are backing away from “green finance”, and there is not much sign of the green boom we were promised. That’s a problem for the City
-
Six top investment trusts for smaller stocks
Liquidity constraints mean investment trusts are best placed to seize the juiciest opportunities