According to Forbes, when it comes to the investment industry, a lot of people think of a group of self conceited analysts, radical investors who sometimes confront with CEOs to “educate” them how to run companies.
It’s in this environment that Nancy Zevenbergen and her four portfolio managers are different because they are good at listening.
Zevenbergen capital investments, founded by 61 year old Zevenbergen, manages US $5.7 billion. In her opinion, the key task of investors in the current economic environment is to find the next great entrepreneur or the next major technological innovation as soon as possible. The key to this style, she said, “is optimism and a view of the future.”. She said her task was to remain curious and “understand the ‘crazy’ vision of new leaders and be an investor with them.”
If she likes a company, she will buy shares, then look around, and then patiently track until the growth of the company stops, and then sell shares. They rarely worry about valuations.
This modest way of investment has achieved remarkable results, making zevenberg one of the best investors in the world. She has always been optimistic about Elon Musk and has held Tesla for about 10 years. Tesla has lived up to her expectations, with its share price up 730% this year, making it the best performing stock in a decade.
At the end of 2016, she found Shopify, an e-commerce company in Ottawa, Canada, and TOBI L ü tke, its founder and CEO. At that time, the stock was less than $50, but now it is as high as $1170.
Last September, rich Barton, zillow’s CEO, decided to let the real estate platform buy a home, which triggered complaints from skeptics, causing the share price to plummet by 20% or even below $30. Zevenberg’s team was very optimistic about Barton’s attempt, so they built a large warehouse. Fifteen months later, zillow’s share price reached 140.
Thanks to these bull stocks, the net worth of zevenberg’s Innovation Growth Fund and genea fund have achieved an amazing growth of 126% and 154% respectively in 2020, ranking among the top in the industry.
Zevenberg founded her company in her living room in the late 1980s, with assets under management of only $500000 and time to take care of her children. Since 1987, her flagship strategy has outperformed the S & P 500 index by about 4 percentage points almost every year. 2020 is a watershed year, when her mutual fund assets doubled to $6 billion, driven by growth in performance and capital inflows.
Zevenberg is not the only female fund manager to crush a competitor in 2020. In fact, at least six fund companies led by women are far ahead this year and have realized tens of billions of dollars in asset appreciation.
Cathie wood, founder of ark investments, has also made a lot of money this year. In 2014, wood, 65, founded ark, whose idea is to package the stock selection strategy as an ETF fund with tax saving effect, and focus on breakthroughs in genomics, robotics, financial technology, autonomous driving, digital services and artificial intelligence.
Six years later, ark managed nearly $44 billion in assets, compared with just $300 million at the end of 2016. This year, the ark fund attracted more than $10 billion in new assets driven by excess returns. The size of her flagship ark innovation fund has soared to $17 billion, up 154% in 2020 alone, with an average annual return of about 46% over the past five years. The ark genome revolution ETF, which she steers (US $6 billion), is up even more this year. “I want individual investors to catch up,” Wood said of this year’s major technological changes Her fund is designed for those “willing to leave fixed income and move into the most exciting stock in history.”.
Ark will release financial models, transaction logs and research reports to public investors, and analysts of the company are happy to discuss them on Twitter and face public criticism and ridicule. Wood’s valuation of Tesla at $4000 a share a year ago has sparked a lot of ridicule on Wall Street. But it turns out that she has a unique vision. Tesla’s surge has cost bears nothing, while women investors such as zevenberg and wood wait patiently. On the 12th and 21st, Tesla was included in the S & P 500 index.
In 2020, not only have female investors successfully selected star stocks, but their funds are also in a leading position in the fields of small cap stocks, emerging market bond portfolio, dividend paying enterprises and sustainable investment.
In 2015, Amy Zhang was employed as portfolio manager of Alger Small Cap Fund and medium Cap Fund, responsible for expanding Alger’s small and medium cap minority business. When she first joined Alger, small cap funds had only $16 million in assets. After rising 54% in 2020 and achieving an average annual return of 30% over the past five years, the fund has reached $7.5 billion. The fund’s heavyweight stocks include cryoport, a new upstart in cold chain logistics, and wingtop, a leisure fast food. Her mid cap equity fund, which was launched in mid-2018, has surged 84% in 2020, attracting more than $500 million in assets, thanks to its holdings of big gainers such as Penn national gaming, a casino operator, and Generac, a power equipment manufacturer.
Karina funk is an engineer trained by MIT. She took the lead in bringing sustainable investment into the mainstream long before sustainable investment became an industry buzzword. Feng Ke, 48, a vegetarian, observes her carbon footprint by cycling to work.
In June 2012, she and David Powell jointly launched the brown Advisory sustainable growth fund, which aims to support about 35 companies to develop related products to improve social and environmental sustainability or operational efficiency.
Its heavyweights include companies such as ball and American tower, which became one of the best funds in the world during the downturn. Even in 2020, due to the selection of star stocks (including Danaher, the life sciences group, and Etsy, which helped small and medium-sized enterprises during the epidemic period), the fund still achieved 38% revenue with its defensive strategy. But Ms. funk’s stock selection criteria were also harsh: she sold Facebook in 2018 because of data privacy issues.
“Sustainable development is a means, not an end,” she said in a media interview three years ago At that time, the fund’s assets were only $1.1 billion. “Our ultimate goal is performance. In order to achieve this goal, we will look for enterprises with strong fundamentals who will use sustainable development strategy to achieve better goals. ” Since then, the fund’s assets have soared to $4.6bn.
Among the funds led by women, there are many outstanding representatives, including capital group’s us new perspective Fund (US $128 billion, led by Joanna Jonsson and Noriko Chen) and JPMorgan’s Equity Return Fund (US $36 billion, led by Clare Hart). According to the data of Morningstar fund, the annual average rate of return of Morningstar fund is 4.65% higher than that of the benchmark company in the past 10 years.
The pgim jennison Growth Fund (US $1.3 billion), led by Rebecca Irwin, Natasha kuhikin and Kathleen mccarragher, has a return of 68% in 2020 and an average annual return of 25% in the past five years, ranking among the best of its kind. At Alger, both the Alger spectrum fund and the Alger capital appreciation fund, where ankur Crawford is co fund manager, have returned more than 40% this year.
In terms of fixed income, Tina vandersteel’s $4.4 billion GMO emerging countries bond fund outperforms the emerging markets bond index this year.
The bull market of US stocks in 2020 also creates new opportunities for women fund managers. When Julie Biel joined Kayne Anderson Rudnick in Los Angeles two years ago, she was just a rising star in the $30 billion company. She was interested in DocuSign, a software company that was going public.
Kayne Anderson Rudnick is known for investing in mature companies and has never participated in an IPO. When the IPO went ahead, bill was in her second trimester, but she was still fighting for quotas. She needs a doctor’s certificate to fly to the bay area to meet with DocuSign’s management. They eventually won a lot of shares and quickly became one of their biggest outside investors.
At that time, Bill began to manage the company’s Kar medium and small cap sustainable growth strategy, and made DocuSign the fund’s largest position. In 2020, the stock surged 225%. This year, Bill’s fund has achieved a 42% return by the end of November. Kayne Anderson Rudnick decided in December to launch a mutual fund version of the strategy, with bill at the helm of the virtus Kar small and medium Cap Growth Fund.
Like zevenberg and wood, Bill started from a very low starting point, managing only $60 million in assets. But in the investment industry, performance is everything. In 2021, there are many hidden gems in Bill’s portfolio, such as Ollie’s bargain outlet and market axis, which are likely to grow in the next few years.