Three Investment Themes

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:

1.  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.
2. 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.
3. 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.

Related News

Three Key Themes For Investing in African Growth
July 29, 2011

The Junior Preferred Shares of Fannie and Freddie: Three Times Your Money in Three Weeks
November 10, 2020

Bridgeline Digital (NASDAQ:BLIN), GSE Systems (NASDAQ:GVP), Materialise (NASDAQ:MTLS): Three Software Stocks, Three Turnaround Stories
May 30, 2023

Three Buckets of Investment-Worthy Medical Device Stocks
September 27, 2010

A Three-Pronged Strategy to Play M&A in Midwestern Banking
February 15, 2011