We believe growing companies exposed to longer-term secular growth drivers that create value and which trade at a discount to intrinsic value will outperform over the longer term.
Our approach works as we focus on business that are benefiting from or focused on thematic secular growth drivers – in other words, they are in the ‘right’ part of the equity market. However, we will only buy those companies if that growth potential is not fully reflected in the valuation. It is also important that the companies demonstrate a record of value creation or we believe have the potential to create value.
At the stock level, our internally developed artificial intelligence platform helps us to identify North American companies which have exposure to longer-term thematic secular growth drivers.