While others guessed where the market was going, EasyAssetManagement built a roadmap, and ended 2024 with a portfolio that did 160% better than the world index. Check how the EAM team did it.
At EasyAssetManagement, a common question we hear is: What drives your portfolios' ability to consistently identify compelling investment opportunities in a fast-changing world?
The answer is simple yet profound: our unique investment style, a seamless fusion of thematic top-down vision and bottom-up precision. It’s a proven philosophy that anchors every one of our AMETFs and has delivered results that speak for themselves.
The world is changing fast. Old playbooks based on traditional sectors and static geographies are being left behind. That’s where our thematic investing framework steps in. At EAM, we organize the investment universe by megatrends, powerful, long-term forces that are reshaping societies, economies, and industries.
The process begins with identifying themes that have the potential to reshape industries and consumer behaviour over the long term. This requires a deep understanding of global trends, from macroeconomic forces to technological breakthroughs. Examples include:
Our thematic lens helps us cut through the noise of traditional investing and spot emerging winners before the crowd catches on
Not all themes are created equal, and the key to successful thematic investing lies in determining which ones are emerging as winners. This involves analysing a variety of factors to gauge a theme’s potential for sustained growth and profitability.
The first factor is macro trends. Are there favourable economic or policy conditions supporting the theme? For instance, government incentives for renewable energy can act as a tailwind for clean energy companies.
Next is growth potential. Does the theme exhibit strong revenue growth prospects? Themes tied to rapidly expanding markets, like artificial intelligence, often show superior top-line growth.
Another important factor is operating leverage. Can companies within the theme efficiently convert revenue growth into earnings and cash flow? Themes with high operating leverage are particularly attractive in uncertain economic environments.
Valuation is also critical. Are the stocks within the theme reasonably priced relative to their growth potential? Overpaying for growth can erode returns, so valuation discipline is essential.
Finally, macro sensitivity should be considered. How exposed is the theme to economic cycles or policy shifts? Themes with lower correlation to macroeconomic volatility can offer more stability.
By evaluating these factors, we can rank themes and focus on those with the strongest tailwinds, trends likely to thrive regardless of short-term market fluctuations. For example, themes like artificial intelligence or fintech stand out due to their ability to drive innovation and capture market share in a rapidly digitizing world.
Bottom Up
Themes give us the map, but stock selection is the journey. That’s where our bottom-up research comes into play. Each stock is evaluated on its own merits, using a comprehensive framework that includes:
The Proof: Performance Backed by Process
Let’s talk numbers. In 2024, our strategy delivered across multiple fronts:
It’s the compound effect of high-conviction themes combined with smart, selective execution.
“Mimicking the herd invites regression to the mean.”
— Charlie Munger
At EasyAssetManagement, our edge lies in combining forward-thinking thematic strategy with rigorous, bottom-up execution. We build portfolios around the future. That’s what sets us apart. That’s our edge.
Discover how to make the most out of AMETFs here and check out the latest courses at EasyAcademy.
Disclaimer
*Past performance does not guarantee future results, different types of investments involve varying risk. Take time to do your own research on your investments in order to make informed decisions.
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