The Road Ahead
Ford’s recent announcement of a record $11.4 billion investment in electric vehicle capacity – the most ambitious commitment in the company’s illustrious 118-year history – got me to thinking about how best to retool my garage for the transition to an EV ride in the years ahead. More relevant to our clients is what will power financial markets and HS Management Partners’ (HSMP) Concentrated Quality Growth Equity portfolio in the months and years ahead.
While electric vehicles are becoming more widely adopted, autonomous vehicles still make us a bit uneasy; we prefer to control the wheel. Similarly, when it comes to investing client assets, we at HSMP believe active management adds value. The autonomous vehicle investment equivalent – passive investing, better known as indexing – lacks the control we prefer in managing client finances. This is notably true at a time when indices are somewhat top heavy with a concentration of mega-cap tech businesses occupying a historically large percentage of popular indexes. Together with high valuations and mounting political, economic and public health uncertainties, we have no interest in autopiloting client assets.
To read more, download the full thought piece here.