Digital Innovations Trends Equity
Key points:
- Focuses on robotics and automation, digital enablers and secure digital infrastructure
- Identifies trends arising from the digitalization of the B2B landscape
- Provides risk diversification
Philosophy
The investment philosophy for Digital Innovations Trends Equity is based on our conviction that we can generate alpha:
- Top-down – by identifying the most appealing trends and themes at an early stage; and
- Bottom-up – by selecting attractively priced stocks that are set to benefit from these trends and themes.
Process
Our investment process consists of three steps. The first involves the top-down identification of long-term trends arising from the digitalization of the B2B landscape. The three major long-term trends are robotics and automation, digital enablers and secure digital infrastructure. The second step is the bottom-up selection of companies that combine relevant exposure to the selected themes with upside potential. And the third step is careful portfolio construction. The position sizing that forms part of this final stage of the process is based on conviction level and risk characteristics.
Team
The Digital Innovations Trends Equity strategy is managed by two portfolio managers, based in Rotterdam. They are supported by two trend researchers and the other trend portfolio managers in the Trends Equities team. This team is responsible for a range of trend strategies that are expected to provide above-average returns by profiting from long-term structural trends. The portfolio managers also work with Robeco’s sector, emerging markets and sustainability analysts.
