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2030 Vision: Global Equity Investing With a Longer-Term Perspective
Rob Hinchliffe, CFA
Portfolio Manager, Head of Global Sector Cluster Research
Michael Mark
Research Analyst
Sell-side analysts focus most of their attention on near-term quarterly earnings. This helps create “white space” for managers taking a longer-term view – provided the thesis behind an investment is sound and the manager holds onto it long enough to play out.
The average holding period for portfolio positions in PineBridge Global Focus Equity strategy is 4.8 years, which, based on the limited academic research on holding periods, places us in the top quintile of managers for this metric.
A long holding period should not represent inertia; rather, it is the expected result of identifying long-term opportunities and insulating convictions from negative shocks and shifts in the macro environment.
Long-term opportunities generally unfold over three to five years. That said, great companies often stack growth upon growth, compounding returns over multiple three- to five-year cycles.
1 Data as of 31 December 2024. Tracking error is provided on an annualized basis using monthly returns since 31 December 2015, reflecting the tenure of the current investment team.
2 Source: “Holding Horizon: A New Measure of Active Management,” CFR Working Paper, No. 15-06, Chunhua Lan, Fabio Moneta, and Russ Wermers, Centre for Financial Research (CFR), University of Cologne, November 2018.
3 Source: Quality Minus Junk, Cliff S. Asness, Andrea Frazzini, and Lasse Heje Pedersen, 5 June 2017; Revisiting Quality Investing, Frederic Lepetit, Amina Cherief, Yannick Ly, Takaya Sekine, 30 June 2021.
4 For illustrative purposes only. The information presented has been chosen by PineBridge to illustrate the investment process. It is not necessarily representative or indicative of all investments made in the existing strategy or fund. Information provided about a portfolio company is intended to be illustrative, and should not be used as an indication of current or future performance of any security, investment, or portfolio company. Prospective investors should be aware that these summaries are selective by nature, do not include all of the transactions made by the Manager's investment team and are not necessarily representative or indicative of all of the investments in the portfolio for any period. Past performance is not indicative of future results.
5 For illustrative purposes only. The information presented has been chosen by PineBridge to illustrate the investment process. It is not necessarily representative or indicative of all investments made in the existing strategy or fund. Information provided about a portfolio company is intended to be illustrative, and should not be used as an indication of current or future performance of any security, investment, or portfolio company. Prospective investors should be aware that these summaries are selective by nature, do not include all of the transactions made by the Manager's investment team and are not necessarily representative or indicative of all of the investments in the portfolio for any period. Past performance is not indicative of future results.
6 Source: Kennedy Doesn’t Like Ozempic. Here’s What He Could Do About It, The New York Times, 22 November 2024.
