Can you describe your thematic approach?
CIO of Chevy Chase Trust We generally have five to seven themes in a portfolio. We have three criteria for what constitutes a theme: It has to span multiple sectors, benefits have to accrue to companies—this is the hardest test to pass because most forward progress accrues to benefit consumers—and finally, it has to be investible.
We have thematic analysts, unlike most of Wall Street, which categorizes analysts by sector. Our analysts are unconstrained in terms of what they look at. For example, following genomics involves looking at the semiconductor and healthcare industries. But a sector analyst in semiconductors or in healthcare would never talk to a genomics company.
Molecular medicine and genomics, supply-chain automation, the end of disinflationary tailwinds, long-term Covid benefits, wealth concentration, and heterogeneous computing.