ECP is a high conviction fund manager and while it may be intuitive to think that a growing economy with rising inflation and interest rate expectations may support returns, it’s actually not a driver of performance.
As Jared Pohl explains in this video, the bulk of ECP’s performance is attributable to what’s happening at the individual stock level, rather than broad economic growth. Focusing investment decisions at the stock level provides a more robust and structural pathway to deliver alpha through the economic cycle, and this is backed up by the fund manager’s long-term performance.