59: Lazard AM's Steve Wreford – Thematic Investing and Non-Linear Structural Change

Steve Wreford is a portfolio manager in the Global Thematic Equity team with Lazard Asset Management. In this episode, we talked about the difference between an investment theme and a good story, sell discipline, monetary policy ("It is hubris!") and non-linear structural changes. Please enjoy the show! Overview of podcast with Steve Wreford, Lazard Asset Management: 3:00 My father gave me a book about the stock markets 3:30 Having a basis in computer science. Are you still using it? 5:40 Thematic investing; it needs to be more than a story 7:00 The distinction between value and growth styles of investing is arbitrary. 8:30 What is wrong with a good story? 9:30 Genuine structural themes are rare and belong in your portfolio, stories belong in the pub 12:30 India is going to be bigger than China in population in three years' time. The rise of India is a big theme. 13:00 We are seeing a sea change in the relationship between central banks and governments 16:00 The influence of the pandemic 18:50 How to deal with tracking error 20:00 Bits of chips. 22:00 With such big themes, when is the right time to sell? 24:50 There is a big difference between knowing a company well and it being a good investment 26:20 Is there ever a danger that one theme dominates the portfolio? 30:00 Sustainability problems are by definition non-linear 30:30 We are in a new world of monetary policies and it is hubris 31:30 What books are you reading at the moment? 33:00 One way to reduce volatility in your portfolio is to turn your screen off for a while. END