A key focus of the WCM Quality Global Growth portfolio is to find quality global companies with durable, strengthening economic moats and corporate cultures aligned to this growth. An example of a company that demonstrates these characteristics is Stryker.
Stryker is a leading medical technologies company that provides innovative products and services that help improve hospital and patient outcomes. Stryker products include surgical and emergency equipment, implants used in joint replacement surgeries, neurosurgical and spinal devices, as well as other medical device products in a variety of specialties.
In this video Brian Huerta, Client Portfolio Manager of WCM Investment Management (WCM) goes into depth about Stryker’s crown jewel, the orthopaedic division, and how the business continually strives to make healthcare better with its robot system, Mako.
Transcript
Tom Hickey (TH): Hello and welcome to this ‘Stock in Focus’ update with WCM Investment Management. Today, I’m joined by Brian Huerta from WCM, thanks for joining us, Brian.
Brian Huerta (BH): Thanks for having me, Tom.
TH: Today we’re talking about a company called Stryker. Can you tell us a bit about what the company does, Brian?
BH: Stryker is a US-based medical device company that is supplying equipment and services to hospitals, surgery centres and surgeons to help them perform their surgeries. The real crown jewel in the business is its orthopaedic division. Stryker have spent millions of dollars in the last several years making robots to help surgeons with surgery.
We think it’s going to benefit from a couple of different things. One is the aging demographic globally, but also people’s interest to remain active in their later years and well through retirement. We think Stryker is well positioned to benefit from that.
TH: How did Stryker do when elective surgeries were halted during the pandemic?
BH: We think it’s just a matter of ‘when’ not ‘if’ someone is going to need a hip or knee replacement. We’re thinking like a long-term investor because we believe that these elective surgeries will come back.
TH: What’s the competitive advantage like at Stryker?
BH: Stryker has an excellent history and reputation. It has global and product breadth, but what’s most important is its history of innovation. It is the undisputed leader in innovation, specifically around orthopaedics. Stryker also has a robot system called Mako, which is enables hospitals to get better economics on surgeries and the surgeon to be more precise and have better outcomes for its patients.
TH: What’s the culture like within Stryker?
BH: This is probably one of the most commercially minded Salesforce that we know. Stryker is able to attract some of the best people within the industry and hold these people accountable. Stryker is very good at what it does. It has spent years developing relationships with surgery centres and surgeons and now able to deliver the best products and understand what those surgeons and hospitals need. Stryker can provide more products for its customers due to that proximity to its client. Having years of relationship development really gives Stryker’s culture a real advantage versus its competitors.
TH: Thank you so much, Brian.
BH: Thank you, Tom.
DISCLAIMER: AGP Investment Management Limited (AGP IM) (ABN 26 123 611 978, AFSL 312247) is a wholly owned subsidiary of Associate Global Partners Limited (AGP), a financial institution listed on the ASX (APL). AGP IM is the responsible entity for WCM Quality Global Growth Fund - Active ETF (ARSN 625 955 240) (ASX: WCMQ) and WCM Quality Global Growth Fund (Managed Fund) (ARSN 630 062 047).
AGP International Management Pty Ltd (AIML) (ABN 33 617 319 123) is the investment manager for WCM Global Growth Limited (ASX: WQG), a listed investment company) and is a corporate authorised representative of AGP (CAR No. 1254169). WCM Investment Management, LLC (WCM) is the underlying manager and applies its WCM Quality Global Growth Equity Strategy (the Strategy), excluding Australia, in managing each of WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) (the Funds). WCM does not hold an AFSL. WQG and AIML are part of the AGP Group.
Even though the Strategy, excluding Australia, is applied to each of WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) certain factors including, but not limited to, differences in cash flows, fees, expenses, performance calculation methods, portfolio sizes and composition may result in variances between the investment returns for each portfolio. The performance of the Strategy is not the performance of the portfolios and is not an indication of how WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) would have performed in the past or will perform in the future.
This material has been prepared by AGP IM for general information purposes only. The material should not be viewed as a solicitation or offer of advice or services by WCM, AGP or AGP IM. It does not contain investment recommendations nor provide investment advice. It does not take into account the objectives, financial situation or needs of any particular individual. Investors should, before acting on this material, consider the appropriateness of the material.
Neither AGP IM, AGP, their related bodies corporate, entities, directors or officers guarantees the performance of, or the timing or amount of repayment of capital or income invested in the Funds or that the Funds will achieve its investment objectives. Past performance is not indicative of future performance.
Any economic or market forecasts are not guaranteed. Any references to particular securities or sectors are for illustrative purposes only and are as at the date of publication of this material. This is not a recommendation in relation to any named securities or sectors and no warranty or guarantee is provided that the positions will remain within the portfolio of the Funds. The reader should not assume that an investment in the securities identified was or will be profitable.
Investors should seek professional investment, financial or other advice to assist the investor determine the individual tolerance to risk and needs to attain a particular return on investment. In no way should the investor rely on information contained in this material.
Investors should read the Product Disclosure Statement (PDS) of the Funds or any relevant offer document in full before making a decision to invest in these products. The Funds’ Target Market Determination can be obtained by visiting www.associateglobal.com.
