Are there any thematic more secular equity ideas that are poised to do well - Larry Hatheway

Larry Hatheway of GAM Investments

Apr 16, 2019

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1. Are there any thematic/more secular equity ideas that are poised to do well? Like the environment and climate change?

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1. Are there any thematic/more secular equity ideas that are poised to do well? Like the environment and climate change?

I do think some of those themes will work, but I do think there are also very long thematic ones. For us, the more important question is what factors are likely to do well. For decades, the combination of momentum and value led the way, but for most of the last 10 years, value has languished and now momentum is not doing so well. We think investors want to pay up for good quality stocks with high and stable margins, and that's the best way to tackle equity markets today. Future themes like climate change or the advent of new technologies will always be part of a portfolio, but they're likely to evolve much more slowly.

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