Why we don't own retail
Retail has seen more tech casualties than most sectors, however some investors are now seeing value emerging in ‘oversold’ names. However, Eileen Riley, Co-Portfolio Manager at US-based Loomis Sayles explains to us in this short video why she disagrees and won’t invest in traditional retail at all.
She nominates the price transparency of e-commerce as the driving force that ‘Makes it very difficult to forecast an appropriate competitive advantage period and forward duration of a business, and for that reason we currently don’t own any exposure to retail.’ However, this competitive advantage period is a key reason that she continues to see value in holding Amazon, despite it currently trading on a PE ratio of 63 times, as she explains here.
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Loomis Sayles’ value driven global equity offering is being distributed by IML here in Australia. If you would like to learn more about their capabilities hit the 'contact' button to get in touch or visit their website for more information.
This information is provided for general information purposes only and does not take into account the investment objectives, financial situation or needs of any person. Investors Mutual Limited (AFSL 229988) is the issuer and responsible entity of the Loomis Sayles Global Equity Fund (‘Fund’). Loomis, Sayles & Company L.P. is the investment manager.
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