Putting durable growth themes to work
A thematic approach is a distinctive feature of Large Cap Growth Fund. The team analyzes global trends, as well as problems and potential solutions, to identify which themes could drive sustained growth for businesses over a multi-year time horizon.
THEME: Autonomous and electric vehicles
Electric vehicle penetration is less than 3% today, and self-driving vehicles are only in the testing phase. Still, the revenue opportunity for semiconductor companies that supply these end markets is already meaningful and growing at above-market rates.
Beyond autonomous driving, semiconductors are used for a range of features in cars, such as cameras, sensors, and internet connections. The rollout of 5G wireless will increase semiconductor demand for automobiles.
STOCK: Cadence Design Systems (CDNS)
Cadence is the second-largest player in the electronic design automation (EDA) market. The company produces hardware, software, and silicon used to facilitate and enable chip design.
- We expect Cadence to benefit from secular growth trends such as the internet of things, machine learning, autonomous vehicles, and artificial intelligence.
- Cadence stock has been resilient in a variety of market conditions — notably in 2022 — as revenues grew ahead of consensus on strong demand for its software and chip designs.
Putnam Large Cap Growth Fund
See how investing in companies with durable long-term growth prospects, high and/or improving capital returns, and a strong ownership culture drives 5-star performance as of 5/31/2020.
Get to know Putnam Large Cap Growth Fund
Learn more about the distinctive thematic approach and how the team analyzes global trends to identify which themes could drive sustained growth for Putnam Large Cap Growth Fund.
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