Portfolio Manager Insights: Growth Investing Themes & Why They Matter

U.S. Large Cap Growth: Innovation in Growth

Investment insights for advisors and other investment professionals

Key Takeaways

• Fidelity U.S. large cap growth portfolio managers identify the major investment themes they expect to drive accelerating revenue and earnings growth over the next several years.
• Among the compelling insights conveyed are:
  • A growing tailwind for consumer internet companies.
  • Music labels generating greater royalty revenue from new and expanding markets
  • An underappreciation for the favorable supply/demand profile for fossil-fuel energy producers.
  • New growth opportunities tied to a renewed focus on health & wellness, including weight-loss drugs, exercise and food consumption .
• At Fidelity, portfolio managers identify opportunities for growth by:
  
  • Building a differentiated view of what companies can earn over a multiyear period.
  • Investing in companies we believe can beat the broader market’s earnings expectations and raise guidance.
  • Looking for companies that can produce durable earnings growth through a variety of market environments.
  • Investing in companies where the market is underappreciating their rate of growth or mispricing the sustainability of growth.