Portfolio construction

Long time horizons matter for growth equity investing

January 06, 2025 - 2 min

Loomis, Sayles & Company

It's important to note that we are long-term investors. For us, long-term means a decade or longer. That means that in any given point in time there's a 12-month outlook. But if you're an investor for the next decade, that means that our outlook is more like for the next decade. We do not change our approach to quality, growth, and valuation, regardless of the market environment. Having said that, each time you have a major disruption in the marketplace, whether it be year 2000 after the dot com crash or 2008 and 2009 energy, materials, industrials bubble burst, or the most recent 2020 to 22 work-from-home stocks’ bubble burst, you have a change in how investors approach investing. We believe that investors going forward, at least for the foreseeable future, will demand profitability and quality in the companies that they will be investing in, which aligns with how we invest in general.

Aziz Hamzaogullari, CFA^®, Founder, CIO, and Portfolio Manager of Growth Equity Strategies (GES) at Loomis, Sayles & Company, takes a long-term view of companies’ growth prospects before adding a stock to a portfolio. In this video, he explains:

Why remaining focused on quality, growth, and valuations of a company’s stock during times of market disruptions is important to long-term investment success.
Long-term investing for the Loomis GES Team means an outlook of a decade or longer.
Why he believes investors will demand profitability and quality in the companies they will be investing in, which aligns with how the Loomis GES Team invests, in general.

Investment ideas

Loomis Sayles Growth Fund
LSGRX

Natixis Loomis Sayles Focused Growth ETF
LSGR

Loomis Sayles Global Growth Fund
LSGGX

Loomis Sayles International Growth Fund
LIGYX

This material is for informational purposes only and should not be construed as investment advice.

All investing involves risk, including the risk of loss. The views and opinions expressed may change based on market and other conditions. They are subject to change at any time based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Past performance is no guarantee of future results.

Unlike passive investments, there are no indexes that an active investment attempts to track or replicate. Thus, the ability of an active investment to achieve its objectives will depend on the effectiveness of the investment manager.

Equity stocks are volatile and can decline significantly in response to broad market and economic conditions.

Intrinsic value is the value of a company, based on the net present value of forecasted cash flows such as future earnings or dividends.

Value investing carries the risk that a security can continue to be undervalued by the market for long periods of time.

CFA^® and Chartered Financial Analyst^® are registered trademarks owned by the CFA Institute.

Natixis Distribution, LLC (fund distributor, member FINRA | SIPC) and Loomis, Sayles & Company, LLC are affiliated.

ALPS Distributors, Inc. is the distributor of the Natixis Loomis Sayles Focused Growth ETF. Natixis Distribution, LLC is a marketing agent. ALPS Distributors, Inc. is not affiliated with Natixis Distribution, LLC.

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