Articles
Quarterly Investor Calls
ITUS Long & Short
ITUS Snippets
Articles
Quarterly Investor Calls
ITUS Long & Short
ITUS Snippets
by Vidya Vydianathan
August 30, 2024
Investing in growth in the public markets
Study our investing style and process at length
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We have been continuously writing in our earlier communications about market being inflationary in nature. So where do we come from and what do we expect because of this nature or cycle and also the reason why we are adopting a contra-portfolio approach.
Government Debt and De-leveraging: The debt in the government balance sheets have reached a level where Central banks are facing challenges in de-leveraging.
Historical Patterns: Historically, central banks tend to adopt inflationary policies to spur economic growth and address debt situations. These policies involved spending by the government through infrastructure, education and other capital expenditure (capex) and often funded through borrowing.
Implications:
The theme that we believe would work well structurally for the next 3-5 year cycles would be 1. Capex Driven growth, 2. Manufacturing led growth to sustain the supply chain, 3. Structural inflation rather than temporal and 4. A higher interest rate regime. With these ideas in mind, our portfolio is positioned towards the sectors that we have been writing about like manufacturing, capital goods, auto, auto ancillaries, power as an ultimate beneficiary of this growth cycle. ITUS portfolio is different from typical benchmark hugged portfolios and in a dynamic market like this positioning on structural growth companies become even more important and this is ITUS plays a differentiated strategy for the investors.
We hope these snippets keeps you updated on our portfolio structure and our thought process. We also keep writing to you about our SIP program that presents investors with a convenient avenue to regularly infuse capital into their portfolios. Feel free to check out the benefits for your clients. If you need more info, reach out to your dedicated relationship manager at [email protected].
These weekly episodes are now available in our website for your quick read and you may access the same in the below link.
Weekly Enlightenment Archives – ITUS Capital