We take a look at the latest earnings results and outlook for companies across the Wilsons Global Equity Managed Portfolio. All our holdings saw some impact from COVID-19 during the quarter. Beneficiaries were companies like Microsoft and Danone, while Starbucks and Honeywell both saw disruptions. Longer-term, we think most of our portfolio positions will be in a stronger relative position post the crisis vs. pre-crisis.
We remain of the view that a secular bull market in equities is emerging. The rally is being underwritten by a combination of re-openings across the real economy, unlimited central bank support and large fiscal stimulus – all of which provides a backstop for global equities.
In this environment, companies exposed to pervasive growth themes – Cloud computing, Digital Transformation, SaaS Health, and Healthier Eating – all themes in the Wilsons Global Equity Managed Portfolio - should be able to continue to increase revenue and market share. In time, they should be rewarded with higher market capitalization.
Exhibit 1: S&P500 Reaction: COVID-19* vs. GFC and Tech Crash
Source: Source: S&P500 rebased to 0% at market low. *COVID-19 data up until 3 June 2020.
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