Investors seeking exposure to the next generation of fast growth companies can use “thematic” approaches as “good starting point”, according to the guests on the latest FTAdviser podcast.
Paul Major, who runs the Bellevue Healthcare investment trust, Ian Mortimer who runs the Guinness Global Innovators fund, and Kamal Warraich, head of equity fund research at Canaccord Genuity all featured on this week's podcast to discuss the challenges around investing in innovative parts of the economy at a time of higher interest rates and uncertainty.
According to Warraich, innovative investments may be defined as those which allocate capital to companies that are trying to solve problems in the world.
He said with this in mind, identifying attractive themes is a way to start to build this exposure for clients.
Mortimer said that while themes are a good starting point “the risk with viewing it that way is one can end up investing in a story not in a business".
He added: "So while starting with a theme, the next step is to consider factors such as quality.”
Major said the risk is that another innovation may come along which usurps the original theme.
You can listen to the podcast by clicking on the link above.
david.thorpe@ft.com
