The Accelerating Pace of Change - Investment Opportunities and Risks

01 April 2021
Accelerator stock image

The pace of change continues to accelerate across a range of sectors and industries. This makes it challenging for many companies to execute their existing long-term strategies.

This current dynamic is also presenting both risks and opportunities for investors.

The opportunity is to identify those companies that are successfully navigating through the changes occurring and invest in them.

Assessment of a company’s ability to adapt to and benefit from change is interwoven in the investment process for the Loomis Sayles Global Equity Fund.

Investment Specialist Peter McPhee discussed this recently with Co-Portfolio Manager Lee Rosenbaum.

Peter McPheePeter McPhee: What do you believe are the implications for investing in an environment with a rapid pace of change?

 

 

 

 

 

Lee RosenbaumLee Rosenbaum: We believe the pace of change across industries has accelerated the last few years. Our team continues to witness disruption across a range of global businesses including retail, media, health care, and consumer products. This change has made it challenging for some companies to keep pace in terms of both execution and strategy. However we view this as an opportunity for our team to identify businesses and buy those companies that are successfully navigating technological change. In some instances, we have found opportunities in companies that are the disruptors themselves. 

 

 

In the full interview [10min video], Boston-based Lee discusses how Loomis Sayles’ unconstrained, bottom-up approach, which is grounded in in-depth stock research, enables the firm to understand the implications of this change. He also provides examples of companies which Loomis Sayles believes have clear sustainable competitive advantages that enable these companies to adapt to the changing environment and to thrive over the longer term.

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