2Q2022 – Focus Growth Commentary

We expect to see the resilience of revenue and earnings growth rise in importance in a more growth-challenged world

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  • Concerns about inflation and rising interest rates continued, especially as the Federal Reserve began raising rates. As we exited the quarter though, the bigger concern seemed to be about the possibility and severity of a looming recession.
  • During the period, the top absolute contributor was MSCI, which we exited and redeployed the proceeds into what we view as more compelling businesses like Adobe. The bottom absolute contributors during the quarter were Amazon, Airbnb, and Netflix.
  • Most of the market sell-off we have witnessed over the last nine months has more to do with a re-setting of valuations based on interest rate expectations, in our view.
  • Going forward, particularly if we remain in a more difficult economic environment, we expect to see the resilience of revenue and earnings growth rise in importance in a more growth-challenged world.

Read the full commentary & disclosures here →