Skip to main content.
Home / Market Insights / Amazon and Tesla Have Been Great Long-Term Stocks. How to Find the Next Ones.

Amazon and Tesla Have Been Great Long-Term Stocks. How to Find the Next Ones.

Barron

Nancy Zevenbergen isn’t a household name among mutual fund investors—though she should be. Zevenbergen Capital Investments, the Seattle-based firm she founded in 1987, runs three mutual funds, all of which rank in the top 1% or 2% of large growth funds.

The largest, the $1.4 billion Virtus Zevenbergen Innovative Growth Stock Fund (A: SAGAX, I: SCATX), has returned an average of 16.4% a year over the past 15 years—four percentage points a year more than the Russell 1000® Growth index, on average, and 5.5 percentage points more than its category; Virtus Investment Partners has a 20% stake in the firm. The $112 million Zevenbergen Growth (ZVNBX) and its more concentrated sibling, the $167 million Zevenbergen Genea fund (ZVGNX), have equally impressive track records.

Much of that outperformance has come in the past several years as longtime holdings, including Tesla (TSLA), Shopify (SHOP), and MercadoLibre (MELI) have taken flight—giving credence to Zevenbergen’s long-held investment philosophy. The best way to build wealth, she says, is to invest in founder-led firms early, stick with a concentrated portfolio, and hang on even when the road gets bumpy. “People underestimate the length and duration of these really exceptional growth companies,” she says.

Zevenbergen spoke with Barron’s about founder-led firms, the lack of women leading technology firms, and what she’s excited about now.

Read the Article

Photograph by Kyle Johnson; used with permission.

IMPORTANT RISK CONSIDERATIONS

Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk. Foreign Investing: Investing in foreign securities subjects the fund to additional risks such as increased volatility, currency fluctuations, less liquidity, and political, regulatory, economic, and market risk. Sector Focused Investing: Events negatively affecting a particular market sector in which the fund focuses its investments may cause the value of the fund’s shares to decrease. Limited Number of Investments: Because the fund has a limited number of securities, it may be more susceptible to factors adversely affecting its securities than a fund with a greater number of securities. Market Volatility: Local, regional, or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the portfolio and its investments, including hampering the ability of the portfolio manager(s) to invest the portfolio’s assets as intended. Prospectus: For additional information on risks, please see the fund’s prospectus.

Please consider a Fund’s investment objectives, risks, charges, and expenses carefully before investing. For this and other information about any Virtus Fund, contact your financial professional, call 800-243-4361, or visit virtus.com for a prospectus or summary prospectus. Read it carefully before investing.

1879986