Bernstein’s global research informs and distinguishes our stock portfolios. We capitalize on our local insight into companies around the world and our cross-border perspective to seek the best opportunities in the global landscape—wherever they may be. Centralized investment policy teams, organized by investment style and geography, using fundamental, quantitative, and macroeconomic research input, make the decisions on stock purchases, trims, and sales.
Broadly, the most important distinction we make globally is between value (bargain-priced) and growth (aggressively growing) stocks. These two investment styles tend to unearth different opportunities and complement each other, depending on market conditions.
Our value-equities philosophy seeks to capitalize on the tendency of investors to overreact to short-term company setbacks, curable by the effects of market change or robust management action. A depressed stock price may bounce back or it may be the precursor of a worse downturn; the challenge of value investing is to identify which outcome is more likely. Our growth-equities philosophy is to seek companies for which consensus is underestimating earnings growth, either the ability of growing companies to accelerate growth, or that of more mature companies to sustain or reaccelerate growth. Disappointing news can send the price of a growth stock tumbling, so the challenge is to balance this risk with the potential for greater gains.