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 1,236 funds in the Large Growth category as of 08/31/19.
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
What happened to value stocks?
Our views on the valuation spread, why investors don't want value, and which approaches may work best in the changing equity landscape.
Talking sustainability with CEOs
We have ongoing dialogue with the management teams of companies in which we invest, across a wide range of sustainability-related topics.
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.