Summary List Placement
Value isn’t dead, it’s just changed its name and appearance.
This is what Lone Pine Capital’s Mala Gaonkar argued in a Milken Institute-hosted panel Wednesday morning. The $20 billion hedge fund that Gaonkar helps manage is known as one of the premier growth investors in the world, and its biggest holdings include names like Amazon, Paypal, Shopify, Facebook, and Microsoft.
But those holdings shouldn’t be thought of as only growth bets, Gaonkar said, when asked by the moderator about value’s outlook. For instance, where Facebook is trading verses where “packaged goods companies” are trading doesn’t give Gaonkar much incentive to invest in the latter, even if they are considered more traditional value stocks.
“We look at value in the sense of what is the best risk-reward vs. growth, and from that perspective. The traditional hunting grounds of just saying ok let’s look at set P/E multiples and set cyclicals is a little dangerous,” she said.
“I would argue that some of the growth sectors actually look like very good value if you actually believe in the duration of growth that has been pulled forward by COVID-19, and the respective push that has been given to certain areas of tech.”
Source:: Businessinsider – Finance