Sl12 opportunities in challenging markets

Download Sl12   opportunities in challenging markets

Post on 29-May-2015

69 views

Category:

Documents

5 download

Embed Size (px)

TRANSCRIPT

  • 1. 23rd AnnualInvestment Conference & Luncheon

2. Opportunities In Challenging Markets Presented by: Tim Moore, CFA, Portfolio Manager Dennis Wassung, CFA, Portfolio ManagerCraig Goryl, CFA, Analyst 3. Productivity & Efficiency Theme Timothy Moore, CFA Portfolio Manager Cabot Money Management, Inc.216 Essex StreetSalem, Massachusetts 01970 800-888-6468eCabot.com 4. What is Productivity?Productivity = Ratio of Output for each Input of Labor, Equipment and Capital/CashEfficiency = similar to Productivity but takes into account Effectiveness & Wastage (input focus)You can be Productive but not Efficient if you consume a lot of resources to perform something quicker!Measured By: Minutes Per Good Produced or Revenue per Employee or Revenue Per Total CompUS Productivity Improvements = +2% Annually (Peak was 00-07 at +2.5% average annually)Technology is #1 Driver of Productivity due to Innovation (Tech = ~25% of Cabot Equities exposure) 5. What is Productivity?US derives 80% of its GDP from Services (Only 20% from Manufacturing compared to 36% 1980; World Bank) 6. What are the Benefits ofProductivity/Efficiency? Higher Standard of Living (#1 benefit) Better Innovation (#2 benefit and underappreciated) Time & Cost Savings (from a reduction in work hours perproject or lower overall cost per unit of achievement) Improved Education More Availability of Medicine Improved Social Programs Increased Real Incomes (more so in emerging markets) 7. Productivity Examples In Our Lives? Computer Tablets & Smartphones (every 2.5 Internetcannibalize 1 desktop or laptop) Ecommerce Digital Wallet/Dollars Cell phones Electronic Medical Records Software Applications Laser or Robotic Surgeries GPS Navigation Devices MRIs Mobility Extended Battery Life Blogging & Text Messaging Automobiles (not horse & carriage) Air Travel Alternative Energy (Solar & Wind) 8. Stock Specific Trends?Datacenters StorageMobile DevicesEnterprise Relationship SoftwareGlobal Sharing Capabilities of Data & Health Records, etcCloud Computing (Virtualization & Software As a Service) Cyber Security & Privacy3D PrintingSolar Panels or Wind Farms 9. The Downside of Productivity? Loss of Work hours & Jobs = Higher Unemployment because not as manyworkers needed to be hired to replace others (Outsourcing to Asia, etc) More Distractions (constant online news flow, too many emails, wastedtime browsing internet, online video games, social media overindulgence) Easily Impacted by Cultures (countries or workplace), Location,Optimization, Resources Availability Cyber Security Issues & Identity Theft Need to address Bottlenecks, Workflow Inhibitors & Unmotivated Workers Not Easily or Objectively Measurable (3 different models/formulas to measureit with each having its own merit and validity) 10. Big Data & Mobile Revolution Dennis Wassung, CFA Portfolio ManagerCabot Money Management, Inc. 216 Essex Street Salem, Massachusetts 01970800-888-6468 eCabot.com 11. The World Is Changing 12. Investment Opportunities Mobile Devices & Components Internet & Data Infrastructure Security Network & Data Cloud Computing & Internet Software 13. Genomics and Personalized MedicineCraig Goryl, CFAEquity Analyst Cabot Money Management, Inc.216 Essex StreetSalem, Massachusetts 01970 800-888-6468eCabot.com 14. Genomics What is it?Genomics The study of organisms hereditaryinformation. An organisms genome is itscomplete set of DNA.DNA The chemical compound containinginstructions for developing and directing all thebodys activities. An identical copy is in each cell.DNA Sequencing The process of determiningthe exact order of the chemical bases that makeup DNA, about 6.2 billion in total for a human.The map of a persons DNA can tell us a lot about them, from their eyecolor to their likelihood of developing cancer. Scientists understand parts ofthe map, but most of it is still a mystery. 15. Genomics Why is this Important?Predictive Medicine Based on my DNA, what are my chances ofdeveloping a particular disease?Diagnostics What disease is this? Is it an aggressive form in need oftreatment, or is it better to wait?Therapeutics What causes this disease, and what drugs will cure it?At the heart of genomics is the promise of personalized medicine. Because ofdifferences in DNA, treatments do not work the same for everyone. Somedayour current practice - prescribing the same drug for everyone who has agiven disease - will seem archaic. This is truly a revolution in healthcare. 16. Genomics Key TrendsSequencing Getting faster andcheaper every dayBioinformatics Managing andanalyzing huge data volume is aproblemCommercialization What knowledge is public domain? What isproprietary? 17. Genomics Key TrendsPrivacy and Ethics Your DNA map is deeply personal; you wouldnt want to shareit. Yet insurance companies cant operate with informationasymmetry. They need to know what you know, or theirbusiness model falls apart. Infants and DNA sequencing Where should we draw the lineon unnatural selection or modifying DNA? Where will othercultures draw it? Is it helpful or harmful to know my chances of developingAlzheimers? Who else should know? What is the accuracy ofthis prediction? 18. Genomics Investment OpportunitiesSequencing equipment This is an increasingly competitivespace with some parallels to personal computing. But sequencingcompanies are positioned to expand into other products likeDNA analytics, informatics, storage, etc.Diagnostics the most advanced area in terms ofcommercializing our knowledge of genetic information; abeneficiary of cheap sequencing.Ongoing research We are always learning and searching fornew ways to help our clients capitalize on this important theme. 19. Market ResearchCraig Goryl and Rob Lutts tour The Broad Institute 20. 23rd AnnualInvestment Conference & Luncheon