Thematic research identifies long-term investible trends. Investment trends may arise from demographic shifts, policy changes, underpenetrated markets, or new business models. Emerging trends could be a good opportunity to go long, while diminishing trends could be a good opportunity to go short or be avoided. The key to a good theme is that it has a multi-year time horizon, which allows you to make an initial investment without worrying about adjusting your portfolio at a later date (“set it and forget it”).

The downside of thematic investing is that these stocks can be very expensive. There is a large pool of capital chasing thematic investments. Valuation multiples can expand significantly when a new theme is identified. This may be okay if the theme is real and durable. Eventually earnings will materialize and the valuation multiple will compress. But valuation multiples could fall sharply if the theme turns out to be bogus, which creates a lot of downside risk. We work hard to identify which themes are truly investible.

Thematic investing has low turnover and is very tax efficient. There are not realized gains since you do not need to reallocate your portfolio for many years. This makes thematic investing ideal for everyday investors who face tax consequences from reallocating their portfolio.

Scroll down for a list of our most recent research notes organized by investment theme. The most recent research notes from across our coverage are listed here. You can also go to out Research Notes – StockCrunch to search or filter our research notes.