We remain confident that the Portfolio owns a collection of competitively advantaged companies that are well-positioned to structurally grow their businesses over the next decade.
One year after the onset of the pandemic, we remain very excited about the results the Portfolio companies continue to deliver.
Short-term rotations have no bearing on how we invest. We believe long-term returns will ultimately reflect the long-term growth of cash flow and earnings of our companies.
Regardless of the macro environment or changing preferences of investors, we believe high quality companies that deliver great results will always be in favor long term.
Re-opening trades, vaccines, and interest rates are all very interesting. But, in our experience, long-term investment returns are driven by sustainable earnings growth.
We greatly prefer to own the businesses that are disrupting rather than those being disrupted.
We always seek to understand the underlying business drivers and secular tailwinds to consistently position the Portfolio for long-term growth.
The strategy taps into our small-cap investing expertise by seeking to capture attractive companies earlier in their lifecycle and allowing us to hold ‘winners’ for longer.
We are extremely pleased with the underlying business performance of our Portfolio companies in 2020, and we feel increasingly positive about their 2021 outlook.
Our mindset differs from investors who try to capitalize on shorter-term price arbitrage–we seek companies that offer infinite opportunities through long-term compounding.