“Without active management and the ability to look different and concentrate against your highest conviction ideas, it’s very difficult to actually generate outperformance in an environment like this.” – 01:30
Andrew Choi, Portfolio Manager at Parnassus Investments, joins Remy Blaire to delve into the current state of the S&P 500 and the advantages of actively managed ETFs in today’s market. With the S&P 500 up 7% year-to-date, the pair explore how the largest market cap stocks, particularly the MAG 7 names along with Berkshire Hathaway and Broadcom, are driving the index’s performance.
Andrew highlights the challenges of generating outperformance in a market dominated by a select few companies, emphasizing the importance of active management. He shares insights into his fund’s approach, which focuses on a concentrated portfolio of high-conviction ideas, allowing for significant differentiation from the broader index.
Lastly, Andrew shares his thoughts on compelling investment opportunities, particularly in the realm of AI. He points to major players like Microsoft, Alphabet, and Amazon, as well as innovators in life sciences, as key areas to watch for growth driven by technological advancements.