Growth Opportunities Fund
We use deep, thematic research to harness the growth potential of large U.S. companies
This fund received a Overall Morningstar Rating™ out of 1,232 funds in the Large Growth category based on total return as of 10/31/19.
Seeking durable growth
Portfolio Manager Richard Bodzy and a team of analysts look for companies across a range of sectors that offer durable long-term growth prospects. They look for high and accelerating capital returns and the ability to grow at above-market rates. They also target companies with an ownership culture — businesses whose managers act like owners and whose interests are aligned with shareholders.
Growth opportunities include:
Revenues growing faster than the market
Underappreciated value drivers
Operating momentum
Ability to deploy capital efficiently
Examining downside capture
Richard and his team analyze prior cycle downside capture — how companies have performed in earlier market declines. They use this research to help identify higher quality businesses, industry leaders, and market share gainers with a high percentage of recurring revenues.
Conducting theme-based research
Investment opportunities emerge from a wide array of themes
Richard Bodzy works with a team of analysts to develop investment themes and find broad areas of opportunity, and then narrows his focus to identify companies that he believes have fundamental strength, a competitive edge, and the potential to produce strong profits.
Trend
Problem/trend
Solution/theme
Investment opportunity
Personalized medicine
Growing demand for treatment of rare diseases and conditions
Customized approaches based on an individual's specific needs
Companies such as those specializing in gene therapy
Increased screen time
Rapidly growing use of bandwidth and demand for content
Technology that enables and supports content across multiple platforms
Hardware, internet, IT security, and software firms
We seek businesses that could become disruptors in their industries with innovative products and services, and significant growth potential.
— Richard E. Bodzy, Portfolio Manager
13 years in the industry
10 years at Putnam Investments
We enter the final quarter of the year with a somewhat puzzling backdrop for equity investors.
Linking impact and performance
Often, the same elements that create environmental and social benefits are driving positive financial performance.
Are international stocks truly cheap?
On the surface, U.S. stocks appear more expensive than international stocks, but a quantitative comparison reveals the impact of sector valuations.
The Morningstar Rating™ for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36 to 59 months of total returns, 60% five-year rating/40% three-year rating for 60 to 119 months of total returns, and 50% ten-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the ten-year overall star rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings do not take into account the effects of sales charges and loads.