With the 2024 U.S. election approaching, New York fund manager Beeneet Kothari anticipates a strong financial market under Donald Trump’s potential second term. Kothari, CEO of Tekne Management Capital, believes Trump’s focus on stock market performance would drive policies that support rising share prices, a hallmark of his first term in office.
“Trump very much measures his success by the price of the stock market,” Kothari told The Australian in an interview. He added, “If he could solve one thing (if he was elected president), it would be a much higher S&P 500 price in 2028 than it is today.”
Kothari is set to speak at the annual Sohn Hearts & Minds conference in Adelaide, Australia, on November 15. Known for his perspectives on economic policy, Kothari predicts Trump would push for aggressive deregulation if re-elected, with relaxed controls for sectors like banking and cryptocurrency. “Trump stands for one thing and one thing only, which is deregulation,” Kothari stated. “If you own securities in companies which are heavily regulated, such as banks, you are going to be in a really good place.”
A second Trump administration would likely favor the cryptocurrency industry, Kothari asserted, and he sees the president’s economic strategy as ultimately inflationary. Trump is “promising to push for lower interest rates and taxes,” Kothari noted, adding, “He wants to cut rates and cut taxes, and there is no way to fund that.”
In discussing potential policy under Kamala Harris, should she take office, Kothari described her approach as more of a continuation of Biden’s presidency. “A lot of people are frustrated by Harris as it’s not so clear on where she stands on a lot of these issues,” Kothari said. “She very much wants to be seen as a continuation of (Joe) Biden to attract Democratic Party voters, but she also wants to indicate an ability and a willingness to change.”
Regardless of the election outcome, Kothari observed a general shift in the U.S. toward more lenient cryptocurrency regulations, adding, “Things are better than the harsh policies which we had (on crypto) one or two years ago.”
He is cautious, however, about election predictions, noting that while polls may lean toward Trump, the race could be tighter than expected. Kothari explained that pollsters are likely “compensating for what was seen as ‘shy voters’” who may not openly declare their support for Trump.
Kothari maintains that the impact of U.S. presidential elections on stock prices is often overstated. “I have been a fund manager for 20 years,” he said. “There have been five U.S. presidential elections over that period. I’m not confident that any one of them made a difference to any major stock price.”
The Sohn Australia conference, a prestigious event raising funds for medical research, has invited leading fund managers worldwide to present their top investment picks. This year’s event is anticipated to raise $70 million since its inception in 2016, with half the proceeds directed to South Australian Health and Medical Research Institute.
Kothari previously recommended Delivery Hero at the 2021 conference when the stock was trading around 98; despite a drop since, he remains confident, noting the company’s significant presence in Middle Eastern food delivery via its Talabat brand. With Delivery Hero’s listing on the Dubai Stock Exchange later this year, Kothari expects, “it will be enormously bullish for the parent company.”
At the upcoming conference, Kothari plans to recommend a Chinese company that’s not yet publicly listed but holds substantial market potential with $US50bn in revenue. Tekne Capital, Kothari’s firm, specializes in technology investment, focusing on emerging markets and sectors.
This year’s conference will explore space, AI, geopolitics, biosciences, and investing trends, supported by the South Australian government. Co-founded by industry leaders like Matthew Grounds and Gary Weiss, the event promises insights into global and regional investment opportunities shaping tomorrow’s markets.