The more things change...
Some of the key responsibilities of a trusted advisor is keeping on top of industry trends, evolving investment options and fund manager strategies. Regular reviews and contact with you allows us to ensure your holdings still meet your needs and objectives. Good advisors do this in part by participating in regular market calls and updates from the fund and portfolio managers with whom we’ve entrusted your hard-earned savings. While the recent months have been challenging for investors good, portfolio managers take advantage of all types of market cycles and stick to their strengths.
Noah Blackstein is one such manager and has been a key member of Dynamic’s Investment team since his arrival in 1997. He is lead portfolio manager for a number of U.S. and Global strategies. He started at Dynamic in 1997 when he became a founding member of the Growth team. Since then, he has established himself as a successful U.S. and global growth fund manager, a reputation that’s strengthened by a 25-year-plus track record of success and numerous industry awards.
Throughout his career, Noah has regularly appeared in many well-known publications including Barron’s and The Wall Street Journal, and has also been a featured guest on CNBC and other respected financial news programs. He brings unparalleled market insight and skill to the job, backed by a disciplined investment method. Spoiler alert, he wrote the following article in 2002.
Numerous headlines over the past year have documented a long list of growth managers abandoning their discipline. It is eerily similar to the 1970s. Many of the founders of growth investing walked or were driven away from the business. The Nifty 50 period had taken the true spirit out of growth investing. But by the mid to late 1970s growth investing was back with a vengeance. A few of the former leaders performed, but mostly a new group of companies, like Wal-Mart and Home Depot, led the great bull market of the late 1970s and 1980s.
This familiar signpost is encouraging, and it is clear that the best years are ahead for growth investing. But our real excitement comes from the fact that a number of growth managers are buying stocks regardless of whether they are growing or have any prospect for growth beyond the next quarter.
While "talking heads" will debate whether we are in a cyclical or secular bull or bear for the next several years, we believe that the coming years will see new companies emerge and provide investors with substantial returns, even if the indexes fail to perform. History will be repeated. Profit growth is not continuous, it follows a life cycle. New companies are born while others fade away. New industries emerge and old ones get reinvented. Companies caught standing still are replaced by stronger competitors with new ideas and better management. Economists call this creative destruction, which causes old companies to disappear, merge or meander, while the next generation of winners emerge and deliver outstanding performance. As nimble and active fund managers, we have an enormous advantage over the next few years.
The list of new or reinvigorated growth companies abound. Bear markets end. New leaders emerge. We remain disciplined and committed to our philosophy. Thank you for your continued support, lots of good health and happiness for 2003. If you have read all the way to the bottom and are confused by the last sentence, let me explain. I wrote this piece in 2002. After nearly 25 year managing Dynamic Power American Growth Fund, I can agree with the adage: “The more things change, the more they stay the same”.
Noah Blackstein, Vice President & Senior Portfolio Manager Dynamic Funds July 2022
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