Content category: Investment Strategy

Sands Capital portfolio managers reflect on five powerful lessons they have learned while investing through past bear markets.
After a difficult year for markets in 2022, Sands Capital’s portfolio managers are confident that investors will be able to benefit from long-term trends like artificial intelligence, cloud computing, and gene sequencing.
As advancements in artificial intelligence and machine learning allow for richer analysis and insights from data, companies are investing more into the people, processes, and products that make up the AI/ML ecosystem.
Forward-thinking investors may find investment opportunities in the expanding realm of digital life.
By automating and augmenting security efforts, machine learning can help mitigate breaches and strengthen system defenses.
Despite the short-term pressure on stocks, we believe that the long-term wealth creation opportunity tied to select enterprise software businesses remains strong, buoyed by a massive and immutable move toward cloud computing.
While we believe we own businesses that can stand the test of time, periods of volatility offer an opportunity to revisit, challenge, and build fresh and renewed conviction in all of our investment cases.
Today, we view electrification, or the shift from vehicles with internal combustion engines to those powered by batteries, as one of the most important secular trends of the next decade.
As the worst sell-off in our 30-year history ensues, we are reflecting on our investment cases and the expected returns of our businesses, which we believe are more attractive than they have been in years.
While there is a long road ahead before data-driven decision-making becomes common across organizations, we believe businesses that enable this data stack will be an important area for venture capital investment in the years to come.