In the case of Facebook and Alphabet, the forest is data collection, which Umansky calls “the new oil.” Even with all the noise about privacy issues, he believes that these companies will continue to be able to leverage their extensive user databases and maintain their dominant footholds. As for Amazon, the stock’s meteoric 32% increase in the first four months of the year speaks to the company’s staying power “even in the face of the relentless assault from our commander in chief, which would be comical if it wasn’t so sad.” He adds that the continued growth of digital ad spending, cloud computing and e-commerce should benefit these and other tech holdings in the portfolio.

His newer positions include Activision Blizzard, a leading video game publisher whose key game franchises include Call of Duty, World of Warcraft and Candy Crush. He believes the company has an excellent management team and stands to be a major beneficiary from tailwinds such as the shift to higher-margin digital revenue, mobile gaming and international expansion.

S&P Global, another position initiated in the first quarter, is a diversified provider of financial and business information. About half the company’s revenue comes from its credit rating agency business, and a quarter of revenue comes from maintaining benchmark prices for commodities and the S&P and Dow Jones indexes. The indexing side of the business should continue to benefit from the shift to passive investing, while the credit rating business is a well-recognized brand name with few competitors that should continue to grow with the debt markets. Sage Therapeutics, a new biotech holding, is developing unique drugs for central nervous system disorders. The company has also seen positive results in clinical trials for drugs used to treat postpartum depression and major depressive disorders, and its maturing pipeline bodes well for future prospects.     

 

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