Why we’re focusing on select opportunities within Financials, Tech at a reasonable price, Healthcare and Industrials

Transcript

Danton Goei:
We're really bottoms-up stock pickers, right? Company by company, business by business, but we do have these long-term themes that we're focused on and sectors where we think that we want to fish where the fish are, we want to think about the areas to focus on. So here are four of the main areas that we do focus on.

Financials of course, we think is a huge opportunity. There are earnings power, especially in terms of lending money have been suppressed over the last decade, very hard to make a lot of money when rates are zero in that environment. That's changed obviously, that's been really the big change over the last year. We think there's a real opportunity there where the valuations haven't caught up yet to the real earnings potential going forward.

Tech at a reasonable price. So you look at CNBC or read Business Week, you think that everything is about tech. Obviously, tech is a big part, but there's a part of tech that's trading at a reasonable price that's not these market darlings, it's more of the stalwarts. A lot of those companies are the areas of focus for us. Healthcare, of course the aging, the population does generate a lot of opportunities in there. Then industrials, where this is the boring but beautiful part of the market and there's a lot of opportunities there as well. That's just the setup where these are four sectors where we're finding opportunities and maybe we can dig into some of the names around them.

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