The Future Through Thematic Investing: Forecasting Tomorrow's Forecast
The major long-term demographic, societal and technological developments around the world lead us to investments with higher conviction, which in our view is particularly important in volatile markets and the key to successful long term investing.
Our Philosophy & Process
The Paduano team (the “team”) manages the Neuberger Berman Global Equity Megatrends strategy (the “strategy” or “GEM”). The team consists of four experienced investors that follow a disciplined and consistent investment process, seeking high conviction investments that are supported by global, secular trends. The team was formed over 30 years ago, and the portfolio managers average 32 years of industry experience. They work with multi-generational families, institutions and charitable organizations including foundations across the globe. Their objective is to deliver superior thru-cycle risk adjusted equity returns.
Since 1991, the team manages the GEM strategy, a concentrated, global all-cap core portfolio of 20 to 30 equity holdings by following a risk-focused, cash flow driven approach that leads to higher conviction and more patient investing. The mandate is unconstrained, with flexibility to invest globally across market cap and style spectrums.
To manage risk and develop conviction, the team selectively invests in (i) businesses with more visible, predictable growth outlooks because each is supported by -- and enabling -- powerful megatrends, (ii) businesses with a leadership team that we are excited to partner with, and (iii) businesses that are trading at attractive multi-year valuations.
This structured and repeatable approach, together with well-defined portfolio guidelines that emphasize adequate diversification, allowed the team to deliver over 30 years of successful long term investing, navigating a myriad of economic and market environments.
Introduction to Global Thematic Equity
In this video, Daniel Paduano and Sherrell Aston introduce the Paduano Group’s unique approach to global thematic equity investing and share three key elements that helps the team in their efforts to manage portfolio risk.
Highlights1
$1.6bn
Assets Under Management
4
Senior Investment Professionals
28+
Years Team Average Industry Experience
1 As of September 30, 2024
Additional Disclosures:
This material is intended as a broad overview of the portfolio managers' current style, philosophy and process. This material is presented solely for informational purposes and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. Information is obtained from sources deemed reliable, but there is no representation or warranty as to its accuracy, completeness or reliability. All information is current as of the date of this material and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Third-party economic or market estimates discussed herein may or may not be realized and no opinion or representation is being given regarding such estimates. Certain products and services may not be available in all jurisdictions or to all client types. Investing entails risks, including possible loss of principal.
Firm history includes the history of all firm subsidiaries, including predecessor entities. Investment professionals referenced include portfolio managers, research analysts/associates, traders, and product specialists and team dedicated economists/strategists.