These 3 ‘disruptive’ shares could be FTSE 100 firms of the future

TL;DR

Investment manager discusses finding disruptors for future growth in various sectors.

Transcript

hello and welcome to our latest insider interview today i'm joined by gene roach who is the full manager of the schroder uk mid-cap fund which is an investment trust gene thank you for joining me today very glad to be here so gene could you firstly run through how you invest i understand there's a big focus on finding disruptive businesses so what ... Read More

Key Insights

• 👀 Gene looks for disruptors that can become large cap companies of the future.
• 🪛 Attributes like growth, management strength, and niche market presence drive investment decisions.
• 🚙 Examples include companies like Safe Store and utility challengers in the energy sector.
• 🤩 Adaptability to market changes, response to disruption, and sustainability are key considerations.
• 🥹 Long holding periods of 4-5 years allow deep understanding of invested companies.
• 🏛️ Selling may occur due to capacity building, ESG issues, expensive acquisitions, or questionable accounting practices.
• 🥹 Gene views selling as an opportunity to invest in new holdings aligned with fund strategy.

Questions & Answers

Q: What are the key qualities Gene Roach looks for in disruptive companies?

Gene looks for growth, strong management, good balance sheets, and operation in niche markets in disruptive companies.

Q: How does Gene Roach differentiate disruptors from established companies in his portfolio?

Gene focuses on companies that can grow to be future large caps as disruptors or those reinventing themselves to respond to disruption.

Q: What sectors does Gene Roach favor for investment, besides tech?

Gene mentions the disruption potential in various sectors like automotive distribution and self-storage, not just in tech.

Q: What are the main reasons Gene Roach might sell a company from the portfolio?

Gene considers selling if a company enters the FTSE 100, shows questionable accounting, has sustainability concerns, or fails to respond to disruption correctly.

Summary & Key Takeaways

• Gene Roach discusses investing in disruptors and established companies.

• Emphasis on growth in earnings, strong management, and niche markets.

• Examples include self-storage disruptors and online retailers that adapt to market changes.