Quality Growth Boutique

As the exuberance we’ve seen over the past few years fades, our Quality Growth team looks to find resilience in industries that are shielded from the effects of tariffs and the volatility around AI.

How do you build the perfect portfolio? Portfolio construction is a little like gourmet cooking, where quality ingredients are combined to create a balanced meal. Portfolio Manager David Souccar reveals our view on what’s at the heart of that delicate balance between risk and return.

Investigative analyst Zhen Li recently attended the Shanghai’s second Global Developer Conference. Zhen’s on-the-ground research reveals concerns about the viability and sustainability of DeepSeek’s model given the intense competition in China's AI sector and lack of clarity around monetization of AI models.

People and organizations demonstrate their moral compass in challenging conditions. In 1999, portfolio manager Ed Walczak made a tough call to stick to his investment principles. Despite the pressure to conform to the market trend, he chose to invest in undervalued insurance companies, a decision that paid off when the internet bubble burst.

Is the tech market’s bull run, much like a steamroller, starting to reverse course? Efficiency gains recently announced by DeepSeek have raised questionsabout the commoditization of LLMs and the potential overinvestment in data centers, shifts that could significantly impact the industry and investors.

The massive efficiencies achieved by DeepSeek’s recently launched Large Language Model have prompted investors to reevaluate the power, data center, and chip requirements for the development of AI models. As AI becomes more widely adopted, we identify companies poised to benefit.

Despite US stocks' outperformance over international equities over the past two decades, investing solely in the US benchmark is not without risks. Yet we do not recommend investing indiscriminately in the broad international benchmark. Being selective and actively seeking out quality non-US companies can diversify portfolio risks and offer robust performance.

The new Trump administration’s policies evoke both optimism and apprehension among investors. This uncertainty is exacerbated by the pressures on the US consumer, high market concentration, and potential earnings disappointments. We highlight key themes we believe are worth watching in 2025.

Former investigative journalists tap into non-traditional sources to gather unique insights for our Quality Growth research team. This article highlights three case studies that led a portfolio manager to increase a position, sell a stock, and revisit the viability of a previous holding.

The mining industry is entering a green supercycle, driven by demand for metals and minerals needed for decarbonization. Despite increased competition and deeper mining, technological advancements are boosting productivity and reducing emissions. This presents compelling long-term investment opportunities in this evolving industry.

The forces driving today’s markets are making it especially hard for investors to find the right balance. How can investors tap into the burgeoning power of AI without taking too much risk? Learn how our Quality Growth team manages risk while maintaining a healthy equilibrium.

How do you manage the impact of market volatility driven by election outcomes? Matthew Benkendorf, CIO of our Quality Growth Boutique, shares ways to help mitigate risks and stay focused on business fundamentals that point to enduring quality.