The management positions itself at an early stage in companies that benefit greatly from megatrends. The fund has grown by around 70 percent in the current year. By Jörg Billina
The stocks in the portfolio still have a market capitalization of less than 20 billion euros. But the market value promises to rise sharply. From the global investment universe, Rolando Grandi picks those companies that he believes will become global market leaders regardless of economic developments. The fund manager of the fund launched by the French investment company La Financière de l’Echiquier Echiquier World Next Leaders looks for companies that are in the early stages of their growth acceleration. Established companies whose business models are changing due to innovations are also eligible for investment. The common feature of the companies is that they are active in investment themes that Grandi has identified as “megatrends of the future”. So far, its values have met the expected return. Since the beginning of the year, the fund has gained over 69 percent. In the past five years it achieved 161 percent.
New ways of life are one of these megatrends of the future. About 40 percent of couples meet on dating platforms. That offers Match Group at. The US company operates apps like Tinder that have ten million subscribers. In the course of renewed lockdowns, the number of customers should increase sharply. “The pandemic is changing our behavior and accelerating megatrends. Companies are growing even more dynamically and can invest more in innovation,” says Grandi.
Health 2.0 is another megatrend. Grandis is the innovation favorite in this area Guardant Health. “The traditional biopsy can only be carried out through direct access to the tumor, which usually requires surgical intervention,” says Grandi. Guardant Health, on the other hand, makes it possible to identify the profile of the tumor using simple blood tests. Grandi believes the company will achieve annual sales growth of 31 percent per year over the next three years. The shares listed on the Nasdaq rose in the past three months by 25 percent.
Online shopping in Indonesia
Grandi sees even more growth potential Sea Limited. The company from Singapore could increase sales annually by 51 percent over the next three years. The main market of the company, which is part of the e-commerce megatrend, is Indonesia. Sea Limited processes over two million orders there every day via the Shopee platform. “A year ago it was less than a million,” says Grandi. The expert also sees climate change, cybersecurity and the cloud as megatrends.
Despite the large number of investment themes, the portfolio is very concentrated with 31 companies. The tech and health sectors are weighted 45 and 22 percent, respectively. Industrial companies only account for 3.4 percent. The share of US companies is 52 percent, companies from China are weighted at 25 percent.
The growth dynamics of companies usually limit their length of stay in the fund. If the stock market value rises to over 20 billion euros or if the companies achieve sales of more than five billion euros per year, the shares can also be managed by Grandi together with his colleague David Ross Echiquier World Equity Growth (WKN: A1C 3DY). The fund achieved 64 percent over the past five years.
Source: BÖRSE ONLINE