Hi Patrick. The beauty about a typical disruptor company is the fact that being profitable is not a short term goal. They are typically driven by taking market share and then worrying about profitability later. Part of Perpetual’s rigorous process involves only investing in profitable companies. This results in us investing in more established and less speculative companies. Therefore, investing in the disruptor can be difficult. I believe it is important to analyse the potential materiality on earnings of disrupted companies before the rest of the market truly understands it. That way you can sell existing positions in your portfolio or generate alpha shorting stocks which could potentially be disrupted before this trend becomes obvious to the broader market.
On The Uber effect -