William Blair is a fundamental asset-management shop, meaning we focus our research and portfolio-construction energy on the selection of high-quality growth companies—but that doesn’t mean we avoid macroeconomic analysis. Indeed, it informs much of our fundamental research. Here are three reasons.

It Is a Leading Indicator of Corporate Performance

First, monthly macroeconomic data can be a reliable indicator of coming changes in aggregate corporate performance—meaning at the industry, sector, or country level. Macroeconomic data releases typically precede corporate earnings by one to four months, giving us valuable information about investors’ expectations of the companies in which we currently or potentially invest.

In addition, changes in financial conditions at the country or sector level, or even more broadly in a global context, can affect corporate behavior.

It Highlights Country-Specific Risks

Typically, we invest in high-quality companies with sound management teams. Because such companies are rarely involved in any shenanigans, at the company level they have little risk. But when investing globally, companies can be affected by broad macroeconomic risks, such as currency fluctuations.

These risks can sometimes be so strong they overwhelm the investing thesis for a particular company or even sector. So, thinking about countrywide risks (as well as opportunities) is an important input into our research process.

It Avoids Silos

Finally, although we invest primarily in equities, it is important to avoid working in a silo. Other markets can and do have a meaningful impact on what is happening in the corporate world, and macroeconomic analysis is well suited to paying attention to those markets.

In my next post, I’ll walk you through our macroeconomic scorecard that highlights how major countries across the globe stack up across several economic indicators.

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
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FOLLOW US

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RSS FEED

Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
Cookie Policy | Social Media Disclaimer | Privacy & Security | FINRA’s BrokerCheck

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