Quality Growth
Global equities specialists since 1984. We provide a boutique investment experience for institutional and intermediary clients around the world.
Masters of their own destiny: how quality companies shape the future
Quality Growth Boutique
In our latest editions of Quality Conversations, Client Portfolio Manager Alexandra Russo and Portfolio Manager Markus Hansen delve into how quality companies—those that are truly "masters of their own destiny"— can chart their own course in any market environment. They also highlight three underappreciated risks in today’s markets and discuss how these companies are uniquely positioned to address them.
We believe quality companies stand out with powerful global franchises, strong pricing power, unlevered balance sheets, and the ability to deliver consistent returns across market cycles. For U.S.-centric portfolios, these companies—particularly those in international markets—offer diversification.
European companies, in particular, present unique investment opportunities. From world-class luxury goods brands that are scarce in US markets to cutting-edge players in semiconductors and software, Europe offers a rich landscape for investors. Many of these companies have long operated in tariff-heavy environments, further showcasing their resilience and adaptability.
Russo and Hansen identify three key risks in today’s markets and explain how quality companies are inherently positioned to combat them:
- Inflation: Quality companies with strong pricing power, high margins, and the ability to deliver returns on invested capital can act as a shield against inflationary pressures.
- Changing cycles: Post-Global Financial Crisis, monetary and fiscal policies were synchronized. Today, central banks are moving in different directions, creating a more fragmented macroeconomic environment. This makes global diversification among quality companies that are less sensitive to macroeconomic shifts more critical than ever.
- Interest rates and fiscal deficits: With expectations of increased interest rate volatility, quality companies with strong balance sheets are well-positioned to pursue incremental M&A or strengthen their market position against more leveraged competitors.
About the authors
Related strategies
About the authors
Topics:
Equities
European Equities
Global Equities
Inflation
International Equities
Quality Growth Boutique
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