On today’s show, we chat with Portfolio Manager Dan Kelley as he provides an overview of founder-led companies, outlining their differences, risks, and his own predictions for their growing evolution. Dan explains that a successful founder must have a long-term focus on the firm they are growing, be able to see beyond just the market numbers, and provide a unique service or product to customers to stand out. In the last couple of years, Dan says, we have been able to see founder-led companies get a full economic cycle, which included a secular low in interest rates and lots of fluid aspects and dispersion in returns. Dan particularly has invested in many founder-led sectors within the Russell 3000, with some of the biggest drivers in these sectors being healthcare and biotech. He mainly invests in public equities that are later in their development, and many of those relationships stem from his professional or personal circles. Not all of these companies are American in his portfolio, as 10% come from Canada or Europe. Dan believes that founder-led companies need to be adaptable and keep up with their ever-changing environment in order to maintain a consistent level of growth. He also discusses the process for selling the companies, what happens when a founder moves on from the company or passes away, and the role of AI for acquiring market share.

For the second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.