Thematic Investing
Reviews and analyses of selected FlowPoint investment themes such as our Stay At Home Index, our Reopening Index, cybersecurity, financial technology and shorting the private prison operators. The U.S. economy is a $19 trillion source of constant change, both secular and cyclical. Demographic, regulatory, technological, economic, social and political forces constantly unleash challenges (Short opportunities) and opportunities (Long positions). FlowPoint invests in innovation and “creative destruction” in corporate trends, emphasizing winners and losers in security selection. Not every investment theme we research is represented in the portfolio at all times – fundamental economic trends don’t always coincide with stock market opportunity.
FLOWPOINT’S WORK FROM HOME INDEX
Summary
- Covid-19 has transformed how and where employees work and accelerated consumer and corporate reliance on technology. Stocks levered to the Work From Home theme have garnered attention.
- FlowPoint has calibrated an index of 87 companies and four ETFs directly benefitting from this trend (FP WFH). These companies represent a diversified group of growth stocks in the technology, media, health care, consumer and real estate sectors, and each has idiosyncratic drivers of organic growth.
- These stocks are not reliant on share buybacks, commodity prices, interest rates or other “macro” factors other than society’s shift in spending habits already underway.
- The median FP WFH stock has a $23 billion market cap, high returns, cash-rich liquid balance sheets, low debt and revenue growth that’s more than triple the S&P 500’s.
- The median FP WFH company share price is up 26% YTD while just ten of the 91 stocks are down YTD. These are high momentum stocks to be sure, but worth considering, especially on pullbacks, in light of the heavy weightings in broader indexes of low-growth financial engineers such as the S&P 500’s Buyback Kings.
- See our complete list of FP WFH index members on page three.
Source: FlowPoint
Source: FlowPoint
Source: FlowPoint
Source: FlowPoint