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The hedge fund Infusive Asset Management said the best way to make money during the crisis is to invest in companies that improve lives while self-isolating and working remotely. We are talking about companies such as Amazon, Netflix, Mcdonald’s and others..
«People want to treat themselves to something enjoyable during this difficult time.», – said Andrea Ruggeri, CEO of Infusive Asset Management.
Infusive has created an ETF with a matching symbol «JOYY». Major issuers of this ETF include KitKat creator Nestle, Big Mac manufacturer Mcdonald&# 39; s, owner of the Oreo brand – Mondelez and LVMH, which owns Louis Vuitton, Sephora and Hennessy. The foundation also owns the assets of the liquor company Diageo.
The ETF, officially known as the Infusive Compounding Global Equities ETF, is up 20% this year despite a deep recession and record unemployment. This is four times the results for the S index.&P 500.
The ETF was launched in December last year, months before the pandemic that changed the usual volume of consumer activity.. The index was based on a strategy known as «consumer alpha», which focuses on six key trends: indulgence, entertainment, beauty, health, efficiency and status.
«We created a strategy before the coronavirus emerged. She’s getting stronger now than she was in 2019», – noted Ruggeri.
Infusive’s goal is to find companies that matter most to consumers.
«The health crisis confirms our strategy», – said Matthew Schopfer, head of research Infusive.
«Our consumer businesses thrive because they satisfy natural human desires, whether it’s for comfort, entertainment, or just great food.», – he added.
In order to measure the level of consumer interest, Infusive is looking for companies with stable financial flows.. Using its data, the hedge fund also discovers brands that have enough instruments to outperform competitors in the market..
«We are trying to find companies that bring joy to consumers», – said Schopfer.
One of the reasons ETF Infusive is so successful is that it owns the tech titans that thrive during the pandemic.. And since the fund is weighted by market capitalization, this means that these stocks play a huge role in the portfolio..
Amazon’s stock price has skyrocketed more than 80% this year as Americans rely on e-commerce more than ever. Since many people work remotely, Apple products have never been more relevant.
One of the risks of the strategy is associated with the fact that the stake is placed on consumers. Experts do not exclude that the fund’s performance may worsen due to the weak global economic recovery.
Only 17% of fund managers expect a V-shaped economic recovery, according to a Bank of America survey. Twice as many people preparing for recession.