We are constructive about the outlook for international markets in 2021. While the bounce in Value versus Growth and a number of other underperforming markets may have a ways to run, we believe a balanced but flexible core stance is still the best one in this market.
We retain a long-term focus in our investment horizon and remain true to our core set of repeatable investment principles of finding high-quality stocks that can sustainably create business value over the long run and a general avoidance of trying to time or trade around short-term shifts in investor positioning or sentiment.
We continued the work that began over the summer by fine-tuning risk exposures and shifting allocations as COVID-19 cases rose, election-related volatility increased, and leverage across corporations and governments rose. Our ability to find value helped boost quarterly results despite the concerns over government stimulus and unemployment.
Entering 2021, we believe strong growth opportunities for emerging markets remain intact. A global injection of liquidity, low interest rates and a stable dollar is a very favorable cyclical setup as we recover from the global pandemic.
We believe our exposure to idiosyncratic, secular growth themes are well positioned to benefit
from our new normal environment of working and entertaining from home or at a distance.
Market dislocation can be a driver of disruption and innovation as well as providing great
opportunities to invest in or add to excellent businesses at attractive valuations.
Fixed income markets continued to rebound but the Fed's commitment to hold rates low should give investors cause for concern.
As we have seen in the past, market dislocations can be a driver of disruption and innovation and a provider of great opportunities to invest. We stand ready to take advantage of whatever the market provides.
