We believe in the power of disruption from evolving demographics, technological advances and regulatory developments. Even as the human brain vastly underestimates the exponential growth of trends and their long-term impact, constant change defines our socioeconomic environment. By recognizing high-return industries that are positively affected by these changes and that offer attractive possibilities for new capital, we can identify and invest in those companies that are likely to be long-term, structural winners. But what does it actually take to create the long-term value so concentrated in a small number of companies and industries?
Our approach
The thematic team uses a four-step process to select the best stocks for the portfolio:
Secular themes and trends
The team searches for secular themes and trends within a strategy. Determining the right trends is a key performance driver, while capturing multiple trends ensures proper diversification of the portfolio and leads to smaller drawdowns.
Identify companies
Next, they identify companies positioned to benefit from these trends.
Scrutinize short-listed companies
The portfolio managers then scrutinize short-listed companies, using fundamental input from our rigorous qualitative analysis . Quality companies with pure-play exposure that grow their economic profits while growing their asset base are preferred.
Construct portfolio
Finally, the portfolio managers construct the portfolio in line with investment guidelines. Position size is based on conviction level.
Richard Speetjens
Portfolio Manager
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Just consider this stunning statistic: only 4% of all US stocks were responsible for all the wealth creation on the US stock market over the 1926-2016 period.
Team
For nearly a quarter century, Robeco has been at the forefront of thematic investing – sensing early on the building under-currents of trends and their powerful potential for re-shaping business and society.
Our first thematic product was launched already in 1998 and over the next two decades, effective collaboration between Robeco’s in-house investment teams, has enabled the development of a diverse range of cutting-edge thematic investment strategies, from disruptive digitalization in finance and retail sectors to confronting environmental destruction and resource scarcity.
Experience honed from decades of investing in equity markets and in key cycles of innovation combine with deep sector knowledge to create an investment team with the skills needed to not only spot the potential of simmering trends but more crucially, effectively monetize their value for investors.
Sub-strategies
Ingredients
Challengers & disruptors
Focusing on companies that cause radical change through innovation
High conviction
Concentrated portfolio to reflect our highest-conviction stocks
Research-driven
A true understanding of the topic has been in our DNA since the start
Trend exposure
Looking to take advantage of long-term, underestimated socioeconomic changes