Interview, Fireside Chat
Large-cap investing with Jennison Associates’ Kathleen McCarragher
- Jenison targets the book of business of other established large-cap growth managers and expects to identify companies driving structural growth through innovation and duration, including those creating non-existent products or transforming current business models.
- The portfolio strategy anticipates holding positions for one to three years, with the understanding that some stocks may be exited sooner if the team's initial thesis proves incorrect.
- Management distinguishes between market noise and genuine news, expecting markets to react more quickly and fully to information than in the past.
- The firm aims to maintain a consistent role within client asset mixes despite changes in specific holdings, acknowledging that active managers often shift from passive strategies following periods of underperformance and may regain favor when outperforming.
- Jenison expects compounding outperformance to become material over multi-year or multi-decade horizons, encouraging clients to adopt investment timelines of three, five, or ten years, or longer, to maximize cumulative returns.
- Holdings are expected to include companies capable of sustaining outsized revenue growth and returns as they strengthen, with the strategy tolerating underweight positions relative to the benchmark if individual stocks perform as well or better than benchmark weights.
- AI adoption is projected to drive enhanced productivity and returns primarily through skill set improvements rather than immediate headcount reductions, with spending levels expected to rise across sectors such as healthcare, education, and oil and gas.
- The team will monitor the profitability of companies accelerating AI spending while anticipating that education and environmental sectors will be long-term beneficiaries of future technological developments.
- Goldman Sachs disclaimers indicate no guarantee that forward-looking results will be achieved and that past performance does not ensure future results, which may vary.