International and global equities

Oppenheimer International Growth Fund: What we learned from the last year

Oppenheimer International Growth Fund: Learning from 2020

Our consistent focus on structural growth trends served us well

During an extremely volatile year dominated by the COVID-19 pandemic, the consistency of our philosophy and process continued to serve us and our investors well. The pandemic forcefully reminded us that events do not change trends; they only accelerate or decelerate them. Many of the structural trends that accelerated during the year are trends in which we have long been invested, including:

  • Buying online
  • Working remotely
  • Using social media
  • Streaming entertainment at home
  • Employing more technology in medical research, treatment, patient management, and communication

New buying opportunities emerged

The dramatic sell-off that global equity markets experienced in March 2020 provided a once-in-a-decade opportunity to initiate positions at attractive prices in companies that had been on our watchlist for years, including:

  • Classic quality growth compounders with very high market share, growing sales, and stable, high returns on capital
  • Leading edge companies with the potential to succeed by disrupting their industries
  • Companies that we believe will rebound with even a moderate return to normalcy following the pandemic (We know people will return to attending the theater, sporting events, and restaurants, as they have done for hundreds of years.)

2021 and beyond

Looking ahead to 2021, we believe pent-up demand will drive rapid growth and step changes in secular trends will persist. Over the medium term, we believe growth stocks will continue to outperform value stocks. We note that, in many ways, equities are priced for a perfect exit from the COVID-19 crisis and any less positive outcome will lead to disappointment and a possible correction. Regardless of short-term market trends, we will adhere to our discipline of investing in companies that can sustainably monetize our structural investment themes for many years.