Philosophy and Approach
Research driven: We believe deep thematic research can add value in a dynamic and changing world. Our process is structured to identify long-term trends we think are likely to drive significant change within industries and companies.
Focused on disruption and innovation: Change can be disruptive, creating risk and opportunity across market sectors and industries. An ongoing assessment of shifting regulations, advancements in technology, and changing consumer preferences helps us manage risk and uncover potential growth opportunities.
Investment merit: Thematic analysis in isolation does not drive investment decisions. Identified thematic opportunities must also undergo rigorous assessments of future growth potential, quality metrics and valuation analysis. Thematic opportunities must also be ones we believe to be good investments.
Our thematic analysis focused on sustainability is centered on pressing environmental and social issues.
Environmental: We believe that a growing awareness of environmental risks associated with certain business practices and use of natural resources more broadly are driving change in regulations and corporate and consumer behavior globally. Environmental areas of focus include alternative energy, pollution prevention, and sustainable water, among others.
Social: Tension in the social fabric of the US and other developed nations is rising as gaps in diversity, inclusion and equality widen. Academic research and company-specific evidence point to the potential for improved corporate performance and reduced risk through thoughtful human capital management. Areas of focus include fair wages, employee engagement, and diverse & inclusive teams, among others.
Outcome-oriented: Investments in thematic opportunities should serve a dual purpose. First, thematic opportunities should be solid investments that will drive compound growth over time in portfolios. Second, long-term investments representing patient capital should align well with business models designed to solve long-term challenges.
Our thematic reporting highlights alignment between company product, service or business model, and solutions to environmental challenges.