Trends Watch: June 1, 2017
EisnerAmper’s Trends Watch is a weekly entry to our Alternative Investments Intelligence blog, featuring the views and insights of executives from alternative investment firms. If you’re interested in being featured, please contact Elana Margulies-Snyderman.
This week, Elana talks to Adam Parker, Founder, Center Lake Capital.
What is your outlook for alternatives?
There will continue to be a robust market for active managers who are outperforming their benchmarks and the market. That said, highly active equity trading strategies are likely to be challenged competing against both quantitative strategies and the large equity platforms. I like to pick stocks with high odds of significant outperformance over multi-year periods.
What is your outlook for investing in technology?
Most of the earnings growth and therefore potential stock appreciation resides inside the technology sector. The world is rapidly becoming digital and despite significant value creation in private companies there are plenty of opportunities for public market investors. We believe technoloy has the best multi-year growth outlook and therefore has the best odds for long-term outperformance. By marrying that with our fundamental analysis we are able to construct an exciting equity portfolio. Macro themes including the digitization of the global economy and the adoption of cloud-based services, machine learning, and artificial intelligence provide a strong, multi-decade tailwind for leading technology equities.
What keeps you up at night?
The excitement I have for the massive and growing opportunities in the technology sector and being able to capture that for investors, and keeping pace with a rapidly evolving world.