Portfolio Manager and Senior Research Analyst Chris Armbruster was featured in The Wall Street Transcript where he discussed his research, stock selection, and portfolio construction process. Chris highlighted that e-commerce & enterprise software are positioned to reaccelerate growth. He also shares which areas he sees opportunities in the market and his favorite investment ideas at the time.
I think one of the earliest parts of the economy that started to rightsize their expense base was information technology. A lot of companies overspent during the pandemic on connectivity software, security software, things that they needed to allow remote work, and they had to go through a period of digestion, of normalizing that spend. We saw deceleration across a lot of our names, and I think we’re starting to get some of the reacceleration there now.
I think similarly with e-commerce, during the pandemic you had a pull forward of shopper intent. E-commerce did disproportionately well versus some other parts of the consumer discretionary space. As the economy reopened, some of that growth normalized back to trendline.
I think that some of these e-commerce companies are well positioned now to reaccelerate that growth and to surprise to the upside versus some more cautious expectations for e-commerce growth specifically going forward.
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