We pursue outperformance with active management
Our equity strategies are designed to outperform their stated benchmarks over multiyear periods with less of the market’s downside volatility. We have developed our construction process to amplify the impact of idiosyncratic risks we find attractive in stocks while reducing common factor risks, especially those that can hurt performance in down markets.
Insights from hybrid research structure drive our performance
Our veteran portfolio managers are accountable for portfolio performance and are skilled in selecting stocks through a collaborative process of exploration and debate with research analysts. Our analysts specialize either as strategy experts focused on the specific needs of a portfolio or as sector experts focused on specific industries. These different specialties lead to more fruitful collaboration in identifying stocks that can make an impact on investment performance.
Our key tenets of equity investing
Portfolios driven more by stock-specific exposures than by common factor risks are better able to consistently generate alpha and manage downside risk.
Portfolio managers are more successful when they have individual accountability while collaborating with a well-resourced, diverse research team built to maximize sector and strategy expertise.
Incorporating context-relevant and financially material environmental, social, and governance (ESG) insights as part of our fundamental framework enhances our overall analysis.
A compensation structure tying investment performance to alpha, risk management, and team collaboration aligns our incentives with the interests of our clients.
Explore our investment approach and recent performance:
No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of their initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss. Use of models and analytical, quantitative and risk management tools and techniques is no guarantee of investment success or positive performance. Putnam Investments does not guarantee any minimum level of investment performance or the success of any investment strategy. As part of our investment analysis, depending on the strategy or portfolio in question, we may integrate environmental, social, or governance (“ESG”) issues or considerations into our research and/or investment decision-making. We believe that certain ESG issues are relevant and material to long-term business fundamentals and security values, and important to all investors. We integrate ESG considerations in our research across asset classes, noting that investment-relevant issues vary by sector, geography, asset class, and issuer context. Research that is tailored to these different settings has potential to add meaningful value. Because our goal is to focus research in areas that are most investment relevant, our approaches are guided by mapping financially material ESG issues. We have internally developed materiality maps to help structure our ESG-related research priorities, with a goal of adding investment-relevant insights.