Viral effects

Viral effects

Putting durable growth themes to work

A thematic approach is a distinctive feature of Putnam Growth Opportunities Fund. The team analyzes global trends, as well as problems and potential solutions, to identify which themes could drive sustained growth for businesses over a multi-year time horizon.

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growth themes

THEME: Viral effects

There is still much uncertainty surrounding COVID-19, but it is becoming clear that there will be notable differences between our pre- and post-pandemic worlds. Across the business landscape, we are already observing significant changes in areas such as consumer purchasing preferences, human communication, and workflows.

We are focused on identifying companies across a multitude of industries that will be beneficiaries once the dust settles.

To meet our criteria, the benefits must be durable. For example, many businesses that have been resilient and strong during the crisis are likely to become stronger in the aftermath.

STOCK: Danaher (DHR)

Danaher develops leading-edge diagnostic tools. Diagnostic testing for all types of viruses will become prevalent as open economies and free movement of people will need to be balanced with safeguards against infectious diseases.

  • Several of Danaher’s portfolio companies, such as Cepheid, Pall, IDT, and Radiometer, are delivering a significant tailwind to its growth.
  • Cepheid’s rapid molecular COVID-19 test was first to market and provides results in under 45 minutes. The company will ship six million units per quarter.
  • Increased testing and the buildout of a more robust pandemic infrastructure should support normalized mid-to-high single-digit revenue growth for Danaher for several years.

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Learn more about the distinctive thematic approach and how the team analyzes global trends to identify which themes could drive sustained growth for Putnam Growth Opportunities Fund.

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