Grant Berry

The latest reporting season has reinforced the resilience of the AREIT sector, with improving residential momentum and stable operating fundamentals despite ongoing interest rate uncertainty, according to Grant Berry, AREIT portfolio manager at SG Hiscock.

“Reporting season reinforced the resilience of REITs,” said Berry. “While markets have been cautious, particularly around rates, fundamentals have held up well.”

Berry said residential was the clearest positive theme of the season.

“There was some caution around residential REITs heading into results, but first-half outcomes generally came in slightly above expectations,” he said.

Berry highlighted Mirvac, which exceeded first-half expectations, while improving sales trends were evident at Stockland, Peet, and Cedar Woods Properties.

“Peet was the standout, with EPS up more than 100 per cent on the previous half. That’s clear evidence that enquiries are translating into sales,” Berry said.

Importantly, demand has remained firm despite a recent rate rise and expectations of further modest tightening. Berry noted that real bond yields have remained broadly stable at around 2.4 – 2.5 per cent since early February.

“That stability is important because it means the valuation backdrop has not materially shifted,” he said.

“On short term rates unless we see two to three additional 25 basis point increases, we do not expect a material impact on underlying residential activity.

More broadly, AREIT operating fundamentals were stable to improving, despite the sector being down around 3 per cent over the month.

Occupancy levels remained stable across most subsectors. Retail sales growth averaged around 3 per cent, office leasing conditions were mixed but showed signs of bottoming, with some valuation upticks, while industrial assets continued to deliver solid re-leasing spreads.

“Office is where we continue to see opportunity,” he said. “Cromwell Property Group was a standout performer during the season following significant balance sheet repair and simplification in recent years.

“We initiated our position last year at a deep discount when an exiting securityholder created the opportunity. It performed strongly through reporting season.”

Dexus, the largest listed office REIT with a high-quality portfolio, also announced a buyback, highlighting the disconnect between underlying asset values and listed prices.

“That buyback was well received and underscores the value on offer.”

While Berry sees less relative value in some large-format retail, he noted that Scentre Group delivered solid operational outcomes but slightly disappointed the market with 4 per cent calendar year growth guidance.

In contrast, neighbourhood-focused retail remains attractive. Region Group, which predominantly owns neighbourhood shopping centres, continues to benefit from resilient tenant sales, leasing conditions and a strong balance sheet.

“It’s a well-defined, resilient business with a new CEO. It’s the sort of ‘sleep well at night’ stock we favour.”

Similarly, Waypoint REIT – focused on service station and convenience retail assets – has delivered resilient earnings and benefited from prior buybacks, with approximately 70 per cent of its portfolio in metropolitan locations.

“Despite concerns around EV disruption on service stations, this is fundamentally a land-rich real estate portfolio that has performed well.”

Berry emphasised that diversification remains essential, particularly given index concentration.

“The sector is highly concentrated, with Goodman Group representing roughly 35 per cent of the index. While Goodman remains a high-quality business, it slightly disappointed the market on data centre leasing.

“With real bond yields still elevated, valuation discipline is critical. We would rather position for value than be carried away by growth themes.”

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Hamish Tadgell

Australian equities are heading into the February reporting season with improving earnings momentum, driven by strength in the resources sector and a more supportive macro backdrop, according to Hamish Tadgell, portfolio manager at SG Hiscock.

Tadgell said expectations for FY26 earnings growth have lifted meaningfully since AGM season, underpinned by a surge in commodity prices and upgrades across the resources sector.

“We expect reporting season to be relatively resilient, supported by improving cyclical conditions and generally conservative guidance,” said Tadgell.

“Earnings growth into 2026 has improved materially, with resources now accounting for around two-thirds of expected market earnings per share (EPS) growth in FY26. Resources earnings growth is running at around 15 per cent, and we expect the positive trends around commodity pricing and currency support to flow through to results.”

While the overall outlook is constructive, Tadgell said cost pressures will remain a key theme, particularly for companies with limited pricing power.

“Rising wages, energy and input costs continue to challenge margins,” he said. “We’re already seeing this play out in the consumer discretionary sector, where companies such as Super Retail Group (SUL), JB Hi-Fi (JBH), ARB Corporation (ARB) and Temple & Webster (TPW) have the need for higher promotional activity and discounting stimulate demand and drive sales.”

Tadgell expects volatility around individual stock results to remain pronounced, particularly among quality growth names that have experienced valuation sell-offs.

“Given the de-rating we’ve seen across many quality growth stocks, there is potential for outsized moves this reporting season if companies can demonstrate that underlying business fundamentals remain intact,” he said.

“That said, we continue to think the valuation derate we have seen around the technology sector and concerns around return on AI investment could weigh on sentiment towards the sector in the near term.

“History shows that even when disruptive technologies are transformative and the longer trend is only going to be one way, like we have seen with digital classified advertising, online retailing and more recently obesity drugs, when the initial euphoria gives way to focusing on cashflows and returns its not unusual to see a hiccup or period of consolidation for a while.”

Management commentary is also expected to be closely scrutinised, with many companies entering reporting season under new leadership.

“There has been an unusually high level of CEO turnover over the past six months,” Hamish notes. “For companies like Carsales.com (CAR), REA Group (REA), Treasury Wine Estates (TWE), Endeavour Group (EDV), Domino’s Pizza Enterprises (DMP), Rio Tinto (RIO) and South32 (S32), this will be an important opportunity for new CEOs to set direction and reset expectations.”

Capital management may prove another key differentiator, with the market’s dividend yield sitting at around 3.2 per cent, below long-term averages.

“Companies that can surprise positively on dividends or capital management initiatives are likely to be rewarded in this environment,” he said.

From a sector perspective, Tadgell expects most resource companies to report solid results, supported by resilient commodity prices, a weaker Australian dollar and generally positive demand conditions. He highlighted aluminium and copper producers as particularly well positioned, given supply-side constraints and structural growth drivers.

Selective opportunities are also emerging in quality growth stocks following sharp valuation retracements.

“While some names still look expensive, we’re starting to see more attractive opportunities where valuations better reflect growth prospects,” he said. “We prefer companies trading on more reasonable multiples and with strong price-to-growth characteristics, including ResMed (RMD), Aristocrat Leisure (ALL) and Light & Wonder (LNW).”

Tadgell also highlighted Australian classifieds businesses as relatively well positioned to manage AI-related disruption.

“These businesses benefit from strong customer franchises, high levels of organic traffic and vertical specialisation,” he said. “Following recent de-ratings, Seek (SEK) remains preferred, with the potential for an inflection in volume growth alongside improved yield from dynamic pricing.”

Looking ahead, Tadgell believes the broader market backdrop remains supportive, despite ongoing risks around interest rates and bond yields.

“While macro factors, particularly monetary policy and any move by the Reserve Bank to increase rates in February can still overshadow results, we believe the environment is becoming more conducive for earnings delivery and broader market participation.”

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Rory Hunter

Small-cap gold and critical mineral miners could benefit from a multi-year resources cycle, underpinned by rising artificial intelligence investment and energy transition needs, according to Rory Hunter, head of emerging and small companies at SGH, while rising interest rates could weigh on small industrials over the shorter term.

“The opportunity in critical minerals today is one of the most compelling themes we see anywhere in global markets”, he said. “The structural drivers behind it are powerful and we expect that to continue in the years to come.

According to Hunter, Australian small companies stand to benefit, with many critical minerals and gold miners listed on the ASX.

“Resources make up more than 30 per cent of the S&P/ASX Small Ordinaries index, and that’s where we see a significant portion of the opportunity. The long-term tailwinds in gold and critical minerals look very durable,” said Hunter.

“If you look at global trends, the sheer scale of AI-related capital spending and the energy generation and transmission build out required to support it, the demand profile for key commodities like copper, silver, uranium, and a suite of more niche critical minerals becomes increasingly strong.

“Add to that the fact that China is increasingly weaponising supply, you have the ingredients for a sustained period of outperformance in the very resources-heavy small-cap index. These stocks are under-owned relative to their small-cap industrial counterparts, so there’s plenty of room for them to move significantly higher and see a substantial re-rating.”

Reflecting Hunter’s bullishness, prices for silver hit record highs in early December around US$58.84, according to Bloomberg. Copper also rallied to a record of US$11,334 a ton on the London Metal Exchange on 1 December.

Investors have been bullish on copper because of its key role in the clean energy transition, with the critical metal up nearly 30 per cent this year. Uranium prices have also rallied this year.

“The supply-demand dynamics favour ongoing gains in critical minerals companies. AI capital spending, energy generation, energy transmission, and potential productivity improvements will underpin commodities demand. Coupled with the supply-side factors with some supply deficits which drives our bullishness in what could be deemed as a new commodities super-cycle.”

In contrast, the outlook for industrial companies is less bullish, according to Hunter. The potential for a rise in interest rates given Australian inflation is back above the central bank’s 2 per cent to 3 per cent target band could see interest rates rise over the short to medium term, putting pressure on the value of small-cap industrial companies.

“In the near term, there is a consensus view that the path of least resistance for interest rates looks to be potentially higher. That creates potential headwinds for small industrials, which are fully priced but also very well owned.

“Despite those potential headwinds, we do expect that small caps have the potential to continue their outperformance. But it could just come in a change of leadership, moving to resources, away from industrial companies,” said Hunter.

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Hamish Tadgell

The August reporting season has seen stark share price volatility with moves setting new records, according to portfolio manager at SG Hiscock & Company, Hamish Tadgell. Around 63 per cent of stocks in the ASX300 have seen price moves of five per cent or more in both directions, and a third price moves greater than 10 per cent, with small caps faring better than their larger peers.

“Overall results have been a mixed bag this reporting season. Underlying growth has slowed and the impact of greater regulation, tariffs, and inflation has led to higher costs of doing business for many companies, creating a challenging operating environment.

“Most companies are having to work harder to manage margins, and the ability to pull on price is becoming increasingly difficult as the cost of living pressures have become more pronounced. This is evident in the more cautious tone we are seeing around revenue growth and guidance for many companies, and growing focus on cost out and restructuring. This is seeing companies that are growing strongly rewarded, and in many cases trading on elevated multiples,” says Mr Tadgell.

The share price volatility experienced this reporting season has been more extreme in larger cap companies where price reactions to results from the likes of James Hardie, AGL, CSL, Sonic Healthcare, Woolworths and Amcor have been extreme.

“In general, small caps have outperformed large caps given better growth prospects and are benefiting from expectations for further rate cuts. This has been most pronounced in the discretionary retail, REITs and resources, particularly gold names,” Mr Tadgell says.

“It seems the market is taking a more black and white view on results day. The weight of money being driven by passive, quant and structured products seems to be creating a more binary view on whether results are good or bad, amplifying the moves and often ignoring the nuance. While this can be frustrating, rarely are the outsized moves as good or bad as share prices are implying, creating long term opportunities for those prepared to focus on the fundamentals,” he says.

The biggest surprise this reporting season for Mr Tadgell has been from CSL. “Once again CSL did not deliver against expectations with a low-quality result beat driven by lower R&D and tax expenses, and soft guidance in its Behring plasma business. This, coupled with management’s decision to embark on major structural changes, including a cost-out/restructure and plans to spin off its Seqirus flu business, has raised questions around the pathway and timing of the recovery.

“Fundamentally, the share price move looks overdone, but the result has raised a number of new questions that will require execution and evidence to instil greater confidence and recovery,” he says.

He adds that several themes emerged from this reporting season. Results have shown a slight increase in confidence in the domestic economy, with evidence that consumer confidence is stabilising and improving following the Reserve Bank of Australia’s rate cut in May. However, US tariffs are impacting US exposed stocks.

“A number of retailers and REITs have highlighted a discernible improvement in trading activity since June and into August. Baby Bunting, REA Group, JB HiFi, Coles and some apparel names which surprised positively on volumes, indicating that households are willing to spend selectively when value or necessity is clear.

“REIT results are also pointing to some improving signs of life in parts of the property market. Stockland, Mirvac and Charter Hall highlighted increased property inquiry with interest rate cuts and signs of property values stabilising. However, this doesn’t appear to be flowing through to new starts and building materials and construction sectors yet.

“Reliance Worldwide, Reece and Boral all highlighted that market conditions remain sluggish and broader demand pressures persist. Geographically this is more pronounced in Victoria where confidence seems lower and there are additional structural concerns around higher taxes and regulation.

“US exposed building material and packaging results highlighted a discernible weakening in the US economy and challenging trading conditions. It is clear the US housing market activity for both new builds and remodelling work continues to deteriorate with US tariff volatility and policy uncertainty weighing on household and business confidence,” says Mr Tadgell.

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Phillip li

This August reporting season will be another volatile one, with share price reactions likely to be sharp and immediate, and consistent with recent reporting seasons, according to Phillip Li, co-portfolio manager of the SGH Smaller Companies Fund.

“Despite the RBA entering a rate-cutting cycle this year, the recent hold on rates has not helped consumer sentiment. Consumers are still cautious, and their depleted savings is not encouraging.

“Among the consumer discretionary companies, promotional activity remains elevated to support volumes and retain revenue levels. These companies are still facing cost pressures, particularly around wages and rents.

“In addition, for those businesses exposed to tariffs, the market will be watching closely to see where those costs will be absorbed along the supply chain, and whether management can offset them through pricing, cost discipline, or new revenue streams,” he says.

Mr Li says that structurally he remains positive on gold and views the current pullback as a timely opportunity to increase exposure to precious metals.

“The underperformance of Australian gold miners, down 12 per cent relative to the VanEck Gold Miners ETF (GDX), was largely driven by the well-flagged GDX index transition, which takes effect on September 19. This change, from the NYSE Arca Gold Miners Index to the MarketVector Global Gold Miners Index, will result in the exclusion of most ASX-listed producers.

“The resulting capital outflows have created attractive entry points, and we are starting to rotate into compelling mid-cap opportunities. With the gold price holding up and production growth in focus, we see upside in a few select names with a track record of strong operational performance and good capital discipline, including Emerald Resources (ASX: EMR) and Vault Minerals (ASX: VAU),” he says.

While headline numbers will draw attention, Mr Li says it’s the outlook commentary that will drive sentiment, especially around margin resilience and demand into FY26. He says the outlook for Australian small caps is mixed, however investors need to think long term and also use market volatility to buy into areas at better valuations.

“Periods of heightened volatility can be uncomfortable, but we believe it’s precisely when long-term investors should stay the course. Historically, some of the best days in the market tend to occur during or shortly after the most volatile periods, and missing just a handful of those days can meaningfully erode long-term returns.

“For small caps investors like ourselves, we have a large universe of companies to invest in and need to really look for compelling areas within this space where we see value. Rather than trying to time the market, our preference is to be prepared. We keep an eye on companies that we would like to add to the portfolio, and use volatility as a time to buy into these opportunities at more compelling valuations.

“Ultimately in small caps, backing quality management teams is key. A competent, aligned leadership team can navigate volatility far better than macro forecasts can. That’s the lens we use to assess opportunity, and it hasn’t changed,” says Mr Li.

This month Lonsec upgraded the SGH Small Companies Fund to ‘Recommended’ following its latest review. It cited several key factors that enhance the Fund’s long-term investment proposition, including the restructure of the investment team with Rory Hunter stepping into the role of co-portfolio manager with Phillip Li, and the consistent application of the Fund’s quality-focused investment process and philosophy. The fund has returned 25.29 per cent over the 12 months to 30 June 2025, outperforming the S&P/ASX Small Ordinaries index by 13.03 per cent.

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Grant Berry

Falling official interest rates means investors are seeking alternative forms of income, and real estate investment trusts (REITs) offer the opportunity to access reliable income and capital gains, with the current cycle of official interest rate cuts a positive for REITs, according to Grant Berry, portfolio manager at SG Hiscock & Company.

Contributing to this within Australia is the high demand from population growth, coupled with elevated construction costs and economic uncertainty, leading to less supply, which is all supporting returns from REITs, he says.

“While we see increasing downside risks for economic growth in Australia and offshore, there are still supportive tailwinds for the REIT sector. Population growth is robust, and forecast to continue,” says Mr Berry.

“Research from CBRE has forecasted that the Australian population will rise to 32 million by 2035, which represents an increase of 4.5 million people over next 10 years.

“Population growth ultimately drives occupancy demand for property. In Australia, the growth is much greater than most other developed nations, and that growth will help to support the demand for Australian commercial property.

“In particular, greater population numbers will raise the need for hospitals, housing, logistics facilities, and we will also need more retail and office space. The CBRE research shows that with each additional 1 million increase in the population, it will require 4,500,000 square metres for logistics, 800,000 square metres for retail, 800,000 square metres for office and 420,000 new residential dwellings. These are all significant numbers,” he says.

The supply dynamics are also an interesting aspect in that brining on supply is challenging in many subsectors due to land constraints, associated planning or economics due to elevated construction costs. Strong demand and low levels of new supply supports the investment case for existing quality real estate. According to Mr Berry retail spaces are a challenge, and vacancy rates in offices are slowing down supply.

“It is a challenge to supply retail spaces, as the associated planning and costs to build on land in urban locations is proving difficult. In the office space, planning and supply is easier given the vertical nature of office buildings. However, vacancy rates are elevated, and construction costs have risen in the order of 40 per cent in recent years. Hence not much supply there. In the industrial and logistics space, there is more supply and while there are areas that are more challenging, such as infill locations, we did in fact have a record year of supply in 2024.  Which is why we prefer retail and office.

“On top of all of this, lower quality assets can be withdrawn from the market for alternative uses such as old office buildings converted to residential,” he says.

Further interest rate cuts and government policy are additional tailwinds for the residential subsector. Mr Berry says that a relatively good regulatory environment and corporate governance in Australia is favourable for commercial property investment in Australia from an international perspective with a low Australian dollar a potential attraction.

Meanwhile, falling bond yields and healthy credit spreads make the real estate sector’s dividend payments more appealing; these securities historically paid higher dividend yields than other equity classes, offering an alternative source of potential income, according to Mr Berry.

“Bond yields for valuation metrics, that is nominal bond yields, feed into discount rates and inflation linked bonds (real bonds), which we believe have relevance to capitalisation rates and property yields. Both are currently elevated in a post GFC context. If property is priced with reference to this, it sets up the asset class for good long-term returns.

“Investing in an Australian REIT can help investors diversify, have exposure to high quality assets and lower transaction costs without buying actual property. Investors gain exposure to different property sectors and real estate assets and such diversification is hard to achieve by investing directly in commercial property given the significant costs and scale involved,” Mr Berry says.

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Mr McKibbin will be responsible for further developing channel opportunities across SG Hiscock & Company’s Australian and global equities and property securities, and its Partnership Program with Morgan Stanley Investment Management, EAM Investors, abrdn Investments and LaSalle Investment Management Securities.

Prior to joining SG Hiscock & Company, Mr McKibbin worked at American Century Investments for over five years, most recently as the head of wholesale, Australia. He joined American Century from State Street Global Advisors where he was head of ETF Managed Portfolio Solutions for the US SPDR ETF Business. He has also worked at State Street Global Advisors and AllianceBernstein in New York.  He started his career in Australia in 2001, working at ING Australia and Colonial First State.

Mr Cochran says Mr McKibbin’s global experience working across various asset classes makes him a great fit for this role, as the business continues to grow and expand its offerings to clients across Australia.

“Alastair has been working in the industry for over 20 years both in Australia and the US. He has extensive knowledge and experience in funds management, working in business development and working with a wide network of existing relationships with key researchers and consultants.

“He will be a valuable addition to our distribution team and we look forward to broadening the reach of SG Hiscock and its partners’ offerings to Australian investors,” says Mr Cochran.

It follows the appointment of Jason Smit to the role of business development manager in December 2024.

Mr McKibbin holds a Bachelor of Commerce degree from the University of Sydney, and is both a CFA charter holder and CAIA charter holder.

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Joining the SGH distribution team, Mr Smit will be working with current and prospective clients, strengthening and expanding the firms’ relationships amongst wholesale and retail investment channels as well dealer groups and financial adviser networks in Victoria, Western Australia and South Australia.

Mr Smit’s career spans over 15 years in the global financial sector. He joins SG Hiscock most recently from Alexander Funds where he held the position of regional manager. Prior to that he was part of the institutional and wealth global client group at Dimensional Fund Advisors and was a wealth management consultant at Macquarie Group.

SG Hiscock’s head of distribution, Anthony Cochran, says the appointment of Mr Smit is a welcome addition to the distribution team as the firm continues to strengthen its client base and bring high calibre funds to the Australian market and its investors.

“Jason has a proven track record of successfully managing clients in the private wealth, institutional and retail sectors, providing a high level of client service, and has a thorough understanding of fixed income, equities and specialist investments.

“His strong background in wealth management and business development, makes him a great fit for this role and we look forward to joining us, and contributing to expanding our business footprint nationally,” says Mr Cochran.

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Travis Prentice

The EAM Global Small Companies Fund has been added to the HUB24 platform from 1 July, giving investors greater access to opportunities in global small cap companies. It is the fourth platform that the fund has been listed on since it was launched in Australia late last year, following Praemium, Powerwrap and Mason Stevens. The fund is managed in partnership with EAM Global Investors (EAM) and distributed exclusively in Australia by SG Hiscock & Company (SGH).

“We are seeing growing interest in global small caps, as this part of the market continues to perform well.  It offers investors good diversification from the large cap sector, which has been dominated by a handful of companies and carries increasing levels of risk” said Anthony Cochran, head of distribution at SGH.

“EAM Global Investors has a proven track record of delivering strong risk adjusted outcomes for investors,” Mr Cochran said.

The EAM Global Small Companies Fund seeks to deliver consistent alpha using EAM’s Informed Momentum® approach to investing in global small cap companies. EAM has utilised this same investment process across all its equity strategies since inception of the firm in 2007.

The fund aims to provide investors with capital appreciation by investing in stocks generally within the market cap range of the MSCI ACWI Small Cap Index (ex-Australia) across 22 Developed Markets countries and 25 Emerging Markets countries. The portfolio consists of 100-150 holdings, with an adaptable stock selection process designed to capture opportunities across geographies (excluding Australia), industries, and traditional styles.

Travis Prentice, portfolio manager of the EAM Global Small Company strategy and CIO of EAM, says the fund has benefited recently from its holdings in the US, Korea and India, with momentum exposure and stock selection proving key to performance.

So far in 2024, the strength of the market has predominantly come from a few key players in large cap. Small caps can offer differentiated exposures to offset the increasing concentration risks in many portfolios. Additionally, a supportive macro backdrop could mean relative outperformance on the horizon. Less uncertainty around interest rates, improving earnings growth and accelerating M&A should be tailwinds for small cap.

“We are seeing an amazing level of concentration in the larger end of the market, while there remains a diverse set of compelling opportunities in the small cap space for stock pickers like us,” Mr Prentice says.

The EAM Global Small Companies Fund has returned 13.59 per cent since inception in 2023 after fees compared to 6.81 per cent for its benchmark, the MSCI ACWI Small Cap Index (ex-Australia). In the first half of 2024, the fund gained 17.82 per cent net of fees, while its benchmark returned 4.56 per cent for the period.

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Bruno Paulson

Investing in a portfolio of high-quality compounders – well managed companies with sustainably high returns on operating capital – can result in strong returns and the potential to outperform traditional equity indices, according to Bruno Paulson, managing director of Morgan Stanley Investment Management’s International Equity team.

“We’re well-known advocates for a long-term approach to high quality investing. The secret to compounding is steady growth at sustainably high returns on operating capital over the long term, which can compound shareholder wealth over the long term, something lower quality companies are unable to do,” Mr Paulson said.

The chart below illustrates the power of compounding, comparing an initial investment of $100 receiving 9 per cent simple interest versus 9 per cent compounding interest over 10 years. As the chart demonstrates, compound interest results in the doubling of capital every eight years, with returns growing dramatically over time.

As Mr Paulson explains, the International Equity team looks for the companies in their global portfolios to be able to continue to compound at around 10 per cent. For a typical company in the portfolio this might be achieved by revenues growing reliably at 5 to 6 per cent across the economic cycle, incremental improvements in margins adding another 1 per cent, and with a 4 per cent free cash flow yield, helped by the near 100 per cent free cash flow conversion, completing the picture.

In rough economic conditions, can the market match this compounding ability? The team is not convinced. “That is the worry right now, that after 15 years without a recession, barring the brief interregnum of COVID, trickier times may be on the way, though signs of an imminent US recession are fading” notes Mr Paulson.

While 2023 was the story of the Magnificent Seven in the US, things have moved on in 2024. “We now have talk of the ‘Fabulous Four’, but it is really the ‘Omnivorous One’ – the American graphics processing unit and chip systems company Nvidia, which is up another 150 per cent in the first half of 2024 as reported by Forbes and at a US$3.09 trillion market capitalisation, according to Bloomberg”.

A combination of ebullient and concentrated markets makes for a challenging investment environment, however, the team’s response is to think in absolute terms and look to compound over the long run. “We want to avoid the permanent destruction of capital, which we would argue is just as important to investors as the chance to earn outsized investment returns.”

Ultimately, the team believes long-term investors benefit from investing in high quality equities that can stand the test of time.

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