Ned Davis Research launches Thematic Opportunities Strategy targeting trends in technology, demographics and global shocks
Ned Davis Research (NDR) has launched its Thematic Opportunities Strategy, offering alpha-generating investment recommendations using a theme-based approach.
NDR reviews hundreds of macro-fundamental trends to find the highest-conviction investment themes, and provides recommendations to asset managers and wealth managers based on NDR’s favourite stock, ETF or basket of stocks. NDR Thematic Opportunities is the investment research firm’s most actionable strategy at the individual securities level.
“The Thematic Opportunities strategy came about organically as a reaction to client feedback,” says Bashar AL-Rehany, Ned Davis Research chairman. “In a recent client survey, over 50 per cent of respondents suggested they were interested in a Thematic Opportunities strategy from NDR. We are excited about the launch of this new strategy which strengthens the investment research value we already deliver.”
Themes included in the strategy are longer-term macro-driven trends that do not fit into an existing industry structure and show better growth than broad economic growth. NDR recognises three broad drivers of thematic trends: new technology, demographics, and global shocks. Using NDR’s 360 degree approach, the product amalgamates the data surrounding these factors to ultimately identify and analyse the most attractive investment themes. Current examples include the Covid-19 recovery, clean energy, cloud software, cybersecurity, 5G, FinTech and electric vehicles.
The recommended themes are investable and can be implemented by using NDR’s unique concentrated portfolios of 10-15 companies or a thematic ETF. Recommendations are also given a conviction level, return target, and investment horizon. These actionable insights are holistic, offering both granular investment ideas as well as long-term themes. NDR Thematic Opportunities is particularly useful for asset managers and investment advisors that need both investment ideas and the rationale behind the ideas to communicate with clients.
The strategy features a user-friendly dashboard, allowing investors to see important trends at a glance, and access relevant, detailed data from 12 new tools and reports with a single click. It will also include weekly and monthly publications that will monitor the themes and the key factors driving the investment thesis, as well as in-depth initiation reports when introducing a new theme.
Pat Tschosik, Senior Portfolio Strategist at Ned Davis Research, adds: “We launched Thematic Opportunities with an initial focus on ‘Tech Titans,’ giving investors insight on the largest, fastest growing technology companies driving the market, including Apple, Salesforce and Adobe. I think what is most exciting about thematic investing, is the freedom we have to find a theme. We can look for companies across sectors, market cap, and geography to find the best themes.”