Vol 11 – US Flows and Liquidity – Coatue Conference

The US markets continue to be fascinating to understand the flow of liquidity, asset allocation and mindset of some of the best managers who have long-decades of track record behind them. It’s only natural that it’s important to study the view of the best managers operating and investing in growth oriented businesses in the US.

Today, we look at Coatue Investment Management, a USD 70 bn private equity and hedge fund firm which invests across public and private markets with a focus on technology, media, telecommunications. the consumer and healthcare sectors.

They recently had their EMW (East Meets West) 2023 conference which connects tech leaders and visionaries from across the globe for two full days of networking and future-forward discussions.

The presentation of the same can be accessed here for those interested to go through the finer details

– https://drive.google.com/file/d/1DYL8jvuE49fN3bGVfFydesJdxKMaBBvh/view

The broad takeaways for someone are as below :

a) Companies in the US are moving to making themselves more efficient and significantly cutting burn. If you cannot cut burn in this environment, you are headed towards closure.

b) The breadth of the rally in the markets is restricted to a narrow set of stocks in the US – ‘the magnificent 7’ as they are called today.

c) Era of easy money is over . Companies across the board need to plan and prepare accordingly

d) Equity valuations are slightly expensive, with regards to the US, and AI is driving this today.