Santander to grow 12% in 2024: Investment philosophy

The Santander GO North American Equity investment fund, managed by Morgan Stanley, has become one of the most profitable funds of the year in Spain, generating a return of more than 12% since the beginning of the year.

This fund invests almost all of its assets in US equities, with 82% invested in Wall Street stocks. A further 8% is concentrated in Canada, while eurozone and Latin American equities do not exceed 5% respectively.

By sector, the fund relies most heavily on technology, which accounts for more than 52% of the portfolio, followed by consumer cyclical companies with a weighting of more than 20%, communications services with 12.5%, health care (10.4%) and to a much lesser extent financial services (2.1%).

The fund manages around €220 million in assets across asset classes and charges a fee of 1.55%.

Largest positions

The fund's largest positions are technology stocks, but unlike other technology funds, the fund does not focus on large companies such as Apple, Microsoft, Nvidia, Amazon, Meta or Alphabet.

The fund's main holding is Cloudflare, which has about 9% of the portfolio. It is a company that offers internet security services through the cloud, whose stock price has risen sharply since the beginning of the year.

Users use its solutions to improve the security and performance of their websites and services.

The fund's second big bet is Uber Technologies, an online transportation platform that is also performing well in the stock market at the beginning of the year. Its weighting in the portfolio is almost 8%.

The third largest position in Santander GO North American Equity is Shopify, which also has a weight of almost 8% in the portfolio.

Shopify is a Canadian e-commerce company that offers cloud-based solutions for digital businesses.

The fourth favorite stock of this investment fund is Snowflake with a portfolio weight of 7.75%. This US-based company specializes in cloud-based data storage. It has also seen significant growth in the stock market since the beginning of the year.

Finally, the fund's fifth holding is DoorDash, a California-based company that operates an online food ordering and delivery platform. It has just over 5% of the portfolio, and it is also performing well in the stock market in 2024.

The good tone of this type of tech stock, although less well known to the general public, explains the strong performance of this Santander fund managed by Morgan Stanley.

Why follow other people's investments

Understanding how large funds, such as the Santander Investment Trust managed by Morgan Stanley, allocate their assets is crucial for several reasons.

First, it provides valuable insight into successful investment strategies and helps you make decisions about where to allocate your funds.

In the case of the Santander fund, a focus on U.S. stocks, particularly in the technology sector, contributed to its impressive 12 percent return, which outperformed many other funds.

In addition, the asset-specific knowledge and asset allocation of a successful fund can identify potential investment opportunities. The Santander fund's significant investments in Cloudflare, Uber Technologies, Shopify, Snowflake and DoorDash, provide a roadmap for investors interested in these sectors.