Investors’ love affair with past winners is insatiable. The ‘conventional wisdom’ on Wall Street is that IPOs, Private Equity, SPACs, and Large-Cap Growth stocks will continue to be the ‘big winners’ in the post pandemic environment. Unfortunately, yesterday’s darlings almost never outperform in the future with the same risk-adjusted returns per unit of liquidity risk (this is important) as they did in the past. Paradigm shifts typically happen slowly and quietly with most investors realizing after the fact.
Many firms put out their 2021 outlook reports but very few of them are actionable. We wish they would attach a link to their prior year forecasts so we can judge how well they did. The goal of this piece is to not only provide unique thought leadership, but to provide investors with actionable investment ideas.