Just under 90 percent of buy-side respondents report a growing focus on economic data, finds the survey, which canvassed the opinions of US buy-side respondents.
From the interviews, the report’s authors conclude that understanding how both macroeconomic and micro economic drivers are affecting companies is currently an all-time-high priority for investors.
‘I am looking at economic data more now; it is a very macro-driven world right now,’ commented one growth generalist. ‘Economic factors are getting more investor attention than a couple of years ago.’
Over 90 percent of investors reveal that interacting with management is an important factor in their investment decisions, with 65 percent noting it as critical.
Investors also cited gloomy conditions in Europe as a reason for caution.
‘The biggest problem is the deficits that are being built up globally,’ one respondent said. ‘There are massive problems in Europe. There are massive problems in Japan, which the world is just starting to recognize.’
The survey also reports that investors are increasingly interested in discussions focused on strategic and operational performance and company differentiation.
‘Company differentiation is important. It varies between industry and sector but the profitability metrics are key differentiators. Growth opportunities in the short term, but more importantly, in the long term, are something we look for.’
By Clare Harrison