Name: Investor Roundtable 2022: Markets will transition “from recovery to resilience”
Uploaded: 2021-11-29
Duration: 7 min
Description: While some sectors have leveled off after making huge gains in 2021, investors see growth opportunity in sectors like telehealth, education, and the supply chain.

While some sectors have leveled off after making huge gains in 2021, investors see growth opportunity in sectors like telehealth, education, and the supply chain.

Investor Roundtable 2022: Markets will transition “from recovery to resilience”

Finance

Investors see growth opportunity in sectors like telehealth, education, and the supply chain.

2022 markets will transition “from recovery to resilience”

let's talk a little bit about this kind of transitional moment that we're in in the markets, we've been through this incredible rebound year with stocks and corporate earnings and the economy all recovering from pandemic lows. But now we're starting to see more different headwinds, whether it's inflation, labor and supply chain problems at the end of government stimulus and there's this possibility for slowing growth. It's 2022 a year where you see equities in general pulling off this one's all skate. Anyone who wants to jump in. I'd love to hear from you. I'll pick that up and jump off for us. Sure. So obviously we've had tremendous returns in equity market for 2021. Um and I guess big picture, the way that that we're thinking about this is that while 2021 was an incredible year of recovery for equity market When we look out to 2022, we think it's going to be more characterized as the Europe resilience. And so we do think that our expectation is that returns will be more muted and we're going to have to be highly selective against that backdrop. And so in terms of resilience areas we're looking to invest would include the reassuring of supply chains, which we all have discovered the fear that they need to be more resilient digitalization of businesses. So we like the company's driving the digitalization and also those being digitalized. Um We like the idea of innovation happening in health care to deliver better healthcare outcomes and then finally resilience for the planet and investing in the transition to a more sustainable planet. So that's the kind of how we're thinking about it is that we're transitioning from recovery that more resilient. Yeah, that's great. There's a lot to impact their um, let's start with the digitalization topic. Um I know that certainly early in the pandemic, a lot of the benefits of digitalization seemed to flow mostly to the biggest of technology companies. Certainly they saw a huge run up in their stock prices. Um is there a sense that those companies are going to continue to dominate in the transformation or are we seeing some of that wealth flow to, you know, lesser known names or more under the radar names, dan. I know this is something that you've been thinking about if you want to jump in. Yeah, I mean, I think the massive acceleration in the adoption of technology is really very broad spread and um, in some ways, you know, it was a forced experiment for a lot of old economy companies. Um, but the experience, I think by and large has been very positive. And so, um, I believe digital transformation is going to continue uh within the economy. And I think we have a lot of the old world company. So for example, restaurants, right, The most hard hit industry and other than maybe airlines. Um, and yet um forced to close so many pivoted to uh delivery and of course online ordering And the success is really um, you know, quite amazing. Uh for many of them, they're saying that even as we reopen their digital efforts and their delivery efforts are actually holding up quite a bit better uh than they were. You know, they're above levels that they were in say 2019 and 2018 before COVID. And I think that transformation, um it's just an example across the very old industry where the benefits if you will of this uh you know, very difficult time to force adaptation um is going to continue to benefit them in the future. And there's of course many examples within tech and industrial healthcare and other industries building on that point. Yeah, I think that in times of great disruption comes, great opportunity and human behavior actually hasn't settled down at all. We had a major disruption and how we live and work and play and do everything last year with everybody kind of going uh online to do everything schools closing, but we're still in the middle of that disruption, like behavior hasn't settled into what the new normal will be. So I think that we're still seeing a ton of opportunity into entrance back and kind of capitalize how people are gonna, are gonna live their lives and perform their work going towards. So my money is quite literally on the entrance, even though the major players, you know, where the, where the early beneficiaries of all of that going on Wednesday, they already had all the products ready to be invested in. I think the next generation of change is going to go come from the entrance Leslie you, as you point out, you're investing in these companies at the earliest of stages. Are you starting to already see, can you name a couple of examples of companies that you're starting to see that are that are responding to these changes in the way that we live and work. I think a great example to really great examples that were perhaps not the most popular for venture capitalists before the pandemic has become a lot more mainstream in terms of who is investing in them one education. Right, So I think a lot of these things are very cautious of the education industry before the pandemic and now, you know, when we realize that there's so many different ways of delivering education, we're starting to see record investing into the education space. So um I felt personally I'm invested in a couple of companies in the space, one is leg up, which helps parents connect with early childhood education suppliers and the other staff education, which is re skilling for the rest of America. What kind of delivering up skilling and re skilling programs through community colleges in the middle of America. The other space that I'm really excited about in terms of how much transformation we found a very short period of time is the delivery of health care. I think a lot of innovation around models for delivering healthcare differently. You know, connecting positions, connecting different types of healthcare, healthcare suppliers to patients and consumers would not normally take time out of their day to perhaps see a nutritionist, to perhaps see a dermatologist with that combination of insurance covers a lot more telehealth, it's a lot more widely acceptable now, you know, you can really just yeah, book an appointment and get on with your day. Um plus all of the thoughtfulness, the extra thoughtfulness that people have uh for better or worse, had around our personal health, through the pandemic, right? Like it's been there, front and center of creating all of these opportunities for four spaces that that venture capital has never touched before. So I'm looking at companies now in the um clinical nutrition space, looking at a lot of uh culturally competent telehealth, um companies that that are connecting populations that don't have doctors who understand them, don't have therapists to understand that a lot of innovation around maternal health, women's health. So really, really excited about those faces. I don't think that we would be seeing this much traction if it weren't for the great disruption of our lives over the past couple of years