Stepping back from looking at a particular company in a particular sector, lets take a broader look at the investment climate as a whole. We spoke this week to a few portfolio managers at Schnieders Capital Management, who talked to us about three broad themes that their portfolio is focused on:
- Globalization- Schnieders sees tremendous growth potential in this area. Specifically, they are focused on a wide demand for US goods and services- beginning with companies that will help build the infrastructure of developing nations. Caterpillar (CAT) and United Technologies are two of these companies- that are and will be building more roads, power plants, factories etc. in the developing world.
- Energy- Schnieders has had an overweight in energy “from the time we opened our doors”. Of particular interest are companies that are focusing on renewable and green energy, such as General Electric (GE) which invested $20 billion in green technologies last year.
- The Aging US population- Schnieders focus with regard to this theme is on drug distributors, rather than manufacturers. To this end, they invest in CVS (CVS), Walgreens (WAG) and Medco Health Solutions (MHS).
For the full interview with Schnieders Capital Management, including a complete overview of their investment strategy and an outlook for 2008, click here.