Entries filed under 'Growth Investing'

    2017: For U.S. Equities, Time to Get Small, Cyclical, and Active

    November 21, 2016 3:50 PM by Brian Foerster

    Economically sensitive sectors should lead the market higher, while small- and mid-cap stocks are finally poised to outpace mega-caps.

    Elections have consequences, and that has been profoundly true this past year. The United Kingdom’s referendum vote in June to leave the European Union (“Brexit”) recalibrated global growth expectations as a result of potentially slower growth in the United Kingdom. Its impact won’t be known until Article 50 of the Lisbon treaty (which sets out how an EU member might voluntarily leave the union) is invoked in 2017, ushering in a host of risks around trade, economic growth, and the political effects on the EU. 

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    What “Brexit” Means for Growth Stocks

    June 29, 2016 3:05 PM by Brian Foerster

    The United Kingdom’s decision to leave the European Union may be a game changer, but top-performing companies in select industries should continue to generate growth.

    As investors scrambled for insights into long-term implications of last week’s “Brexit” vote, Lord Abbett’s small-cap growth investing team took the following view:  

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    The Growth Investor: Lessons from the Valeant Struggle

    March 24, 2016 11:10 AM by Brian Foerster

    Astute technical analysis could have saved some investors in this former high-flyer a lot of pain.

    (The first in a periodic series of blogs on growth investing.)

    For many investors, nothing captures their imagination like growth stocks, especially those of companies that disrupt the established order with transformative innovation the world has never seen before, or simply products, services, or technologies that are faster, better, and cheaper.

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    China's Latest Tech Push

    December 8, 2015 4:03 PM by Lord Abbett Editorial Staff

    China, the world’s largest consumer of semiconductors, is moving aggressively into manufacturing them, which threatens producers in Korea and Taiwan.

    Although China consumes half of the world’s semiconductors (see Chart 1), it doesn’t have a single domestic manufacturer among the 10 biggest chipmakers, according to Bloomberg News. Taiwan and South Korea account for the lion’s share of production. But with China’s government pushing to grow its own semiconductor industry for national security and lessen its dependence on foreign technology, recent deal making suggests a new world order may be in the offing.

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    Fishin' Chips: How M&A Is Transforming Technology

    December 1, 2015 5:18 PM by Lord Abbett Editorial Staff

    The $330 billion global semiconductor industry is undergoing historic consolidation, but innovation in some quarters has stalled, say analysts.

    In 15 years of covering the technology sector, Lord Abbett Research Analyst Eric Ghernati has never seen anything like the merger and acquisition (M&A) activity of the last several years. (See Chart 1.)

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    Shelter from the Storm

    October 2, 2015 1:25 PM by Lord Abbett Editorial Staff

    When high fliers hit turbulence, stable-growth stocks, such as best-of-breed homebuilders and a home-improvement products retailer, gain favor, especially in a promising housing recovery.

    In light of the recent equity-market pullback, some portfolio managers have taken a series of steps to help mitigate volatility.

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    How Multiple Generations Are Fueling an Apartment Boom

    August 7, 2015 12:00 PM by Lord Abbett Editorial Staff

    It’s not just millennials who are renting. Baby boomers and well-heeled Generation X-ers also are driving a surprising share of the overall demand for rental units.

    Don’t let news of the slow housing recovery fool you. While sales and construction of single-family houses have faced considerable headwinds since the financial crisis of 2008–09, strong demand for rental units has fueled an apartment boom.

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    Why the Pall Over Malls is Overblown

    July 31, 2015 3:35 PM by Lord Abbett Editorial Staff

    Are malls doomed by e-commerce, as some pessimists have suggested? You’d never know it to look at the performance of regional mall real estate investment trusts (REITs). 

    Will the explosive growth of shopping over the Internet spell ruin for regional shopping malls?

    Clearly, some well-known retailers have failed or closed a number of mall locations in recent years for a variety of reasons, as more shoppers made their purchases online, hurting weaker quality malls, said Lord Abbett REIT analyst Steve Benyik.

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    Millennial Consumers Reach an Inflection Point

    July 24, 2015 10:25 AM by Lord Abbett Editorial Staff

    As a group, millennials outnumber baby boomers. Their incomes are climbing. And some experts expect them to account for one-third of all retail spending in the next five years.

    Of all the investment themes that emerged during Lord Abbett’s recent research presentations, the rising influence of Generation Y, born 1980–2000, may have resonated the most.

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    Complexity of Cybersecurity Threats Is Rising

    July 15, 2015 10:15 AM by Rick Vallieres, CFA

    Can "private cloud" solutions mitigate such vulnerabilities? 

    High profile cybersecurity breaches are making headlines and the volume of attacks on institutions is rising as much as 50% per year. Meanwhile companies are turning to new technologies and approaches to defend against increasingly sophisticated attacks (see Table 1). A cybersecurity arms race is under way.

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