Given that the Federal Reserve’s rate-cutting cycle has begun, investors should assess which equities offer strong growth prospects. While large-cap tech stocks have dominated investor attention for most of the year, overvaluation concerns are now starting to be raised. Do these tech giants still have room to grow?
Aziz Hamzaogullari, CFA, Loomis Sayles founder and chief investment officer of the Growth Equity Strategies Team, recently discussed the tech industry during the “Navigating the Noise” podcast from Natixis Investment Managers. During the podcast, Hamzaogullari asserted that growth opportunities still persist among the biggest names in tech.
“In the case of Alphabet and Meta, they’re driven by a structural shift to online advertising. When I look at future growth prospects, the structural shift to online advertising is still very much intact,” Hamzaogullari added. “If you look at the total annual ad spending globally, it’s trillions of dollars, and out of that, still only one-third or so is online spending, whereas consumers spend more than half their time in online.”
A Private Equity Approach to Large-Cap ETFs
When constructing large-cap exposure within a portfolio, investors should stick with the funds that can provide long-term proven results. One such fund is the Natixis Loomis Sayles Focused Growth ETF (LSGR ), which is run by Hamzaogullari and his team.
Crucially, LSGR cultivates a large-cap portfolio focusing on companies with excellent growth potential. The management team runs LSGR’s portfolio with a private equity perspective, seeking long-term investments in companies with resonating business models.
An actively managed fund, LSGR strives to maintain a high-conviction portfolio with minimal turnover. As such, investors can use the fund as a concentrated means to access large caps with sufficient long-term potential.
Many investors continue to choose LSGR as an addition to their large-cap portfolio. As of Sept. 26, the fund has seen over $70 million in fund flows over the last three months.
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