Will Kenney, Senior Fund Manager, explains how our Global Equities team’s proprietary Corporate Life Cycle model helps to make sense of the challenges facing different companies in the lockdown, giving strong clues about how their management can best deploy capital to create long-term value for shareholders.
Covid-19 has posed huge challenges for companies. The sheer speed that the lockdown was imposed, first in China, which affected global supply chains, then across Europe and the US, was staggering. But the exit hasn’t been as quick and many restrictions will remain in place until a successful vaccine and treatment regimen are identified.
While governments and central banks have worked hard to soften the impact, introducing stimulus packages unprecedented in scale and speed, many CEOs haven’t outlined a coherent plan for emerging from the crisis.