Speaking in Sydney on Thursday, Munro Partners chief investment officer Nick Griffin said global equity investors have over 24,000 listed companies to choose from.
“There’s a whole bunch that profess to grow, but the vast majority are growing because of the macroeconomics,” Mr Griffin said.
“What we try to do is focus on these what we call secular or structurally growing companies… companies that grow regardless of the macroeconomic environment,” he said.
In total, Munro Partners has 22 investment trends or ‘areas of interest’, many of which are slanted towards sectors affected by technology such as e-commerce, digital payments and video games.
For example, Munro’s Global Growth Fund held five companies in the ‘digital enterprise’ category comprised up of tech giants such as Microsoft.
Other themes included ‘Internet disruption’ featuring ‘FAANG’ stocks (namely Facebook, Apple, Amazon, Netflix and Alphabet’s Google) that benefit from the move of content consumption from traditional platforms to online and digital platforms and the rise in advertising revenue, Mr Griffin said.
Within the ‘Internet disruption’ theme were sub-trends that Munro had identified, such as ‘premium content’ (e.g., Netflix, Disney and Lionsgate) or ‘connectivity’ (such as Verizon, Comcast and Microsoft).
Speaking to InvestorDaily, Munro Partners portfolio manager James Tsinidis said while the firm was invested in FAANG stocks, there are other options available as well – pointing out less than 15 per cent of Munro’s portfolio is exposed to the FAANGs.
“It is correct to say that there are numerous other structural growth areas to invest in around the world today,” Mr Tsinidis said.
“These would include areas like video game publishers, emerging consumer (premium products that appeal to the developing Chinese middle class), food revolution (trading-up in food tastes) and innovative health (companies involved in improving healthcare standards and lowering costs),” he said.
