“Netflix is down 60%, but it will continue to grow”
Picking stocks that can beat the rest of the market is a notoriously difficult task. But get it right, and a truly disruptive and innovative business can boost returns for investors.
James Dowey, who co-manages the Liontrust Global Innovation fund with former Olympian rower Storm Uru, said finding a truly innovative company is key to beating the rest of the stock market.
Although his fund has suffered this year, his long-term track record presents an attractive option for investors looking to get into nascent stocks. It has returned nearly 600% since its inception in 2001, beating the rest of the stock market by 271 percentage points.
Mr Dowey tells Telegraph Money how he finds these hidden gems and why UK businesses can ditch their boring label.
Who is the fund for?
We invest in innovative companies because we believe they can achieve superior returns. This does not mean that we only invest in technology. True innovation is more than that: it happens in all sectors of the economy. An innovator delivers real customer value, either by lowering prices—as Amazon did—or by dramatically improving the quality of a product or service. We consider innovation as the ultimate mark of quality in a company and the best engine for growth.