If you were to draw up the ideal scenario for active managers looking to generate alpha, you would start by identifying a systematically important industry that presents a massive, global opportunity set.
You would also want an industry that is being reshaped by multiple, interrelated disruptive forces that are shifting profit pools across the value chain, resulting in many winners and losers.
To top it all off, you would want the industry to be solving problems that have broad implications for society. In short, you would be looking for the automotive industry.
We believe that today’s automotive industry—more than at any other time in its history—presents ample opportunities for active managers to uncover value for their investors.
In this paper, five of our global research analysts discuss how advanced driver-assistance systems, ridesharing, and electric vehicles are driving change across the industry.