It looks for innovation leaders with superior management that benefit from new industry conditions.Visit the Business section of Insider for more storiesThere is no doubt that COVID-19 brought a lot of loss to the world. However, at the same time, it helped accelerate innovation across several industries as it forced businesses and individuals to adapt to more constricted environments than they were accustomed to.
But even before COVID sparked the acceleration in innovation, Matt Moberg, a portfolio manager with Franklin Templeton's Equity Group, had been already investing in this phenomenon for more than fifteen years now. returned 57.68% last year, beating the S&P 500's and Russell 1000 Growth's 18.40% and 38.49% gains, respectively.
The reason is that the market often misestimates a company's durability of growth or even the pace at which growth can expand. Further to that, even some of the companies that he covers are viewed as expensive on a 12-month financial performance basis, he said. But what Moberg's team does is look at a company's growth as well as the pace and durability of that growth going forward instead of looking backward in time.