What?
A global equity strategy focused on high-growth, innovation-driven companies with the potential to become, or remain category leaders in their industries.
Global Future Leaders
Global Future Leaders
Why?
Whilst the winners from the digital revolution of the last 30 years are well known and highly valued, history teaches us that technological change is constant. Incumbents that appear impregnable will inevitably be usurped at some point and the speed with which new technologies are now adopted by consumers somewhat ironically means this can happen very quickly. The Global Future Leaders strategy aims to invest in those businesses – the ones that will benefit from developments in artificial intelligence and other disruptive technologies, producing the next generation of winners.
Long-term earnings growth is the most powerful driver of share price performance. The strategy focuses on identifying businesses capable of delivering high sustainable growth over a minimum of five years (a markedly longer timeframe than is forecast by most investors), especially those leveraging innovation to create strong demand and defensible market positions. To do so requires highly specialised knowledge, and a commitment to deep, fundamental research. In a world increasingly fixated on short-term results, we see compelling long-term opportunities where the market underestimates the transformative power of innovation.
How?
There are 3 key components to the investment process:
Targeting innovation hotspots – focusing on sectors where breakthrough innovation is shaping the future, primarily including technology, healthcare, and digital media. The strategy emphasises companies with market caps under $20 billion, where inefficiencies are more prevalent and growth potential is often overlooked.
Unearthing hidden opportunities – through meetings with management teams, conducting deep fundamental research, and identifying where the market has mispriced future economic potential. Rigorous analysis models long-term economic profits and targets compelling 5-year IRRs based on suitable valuations.
Building high-conviction portfolios – investing with conviction, constructing a focused portfolio of companies that offer the most attractive risk-adjusted returns across 5 different types of company that provide strong inherent diversification.