How are you guys navigating this covid world? It has been very fun to see the alpha that can be generated from some of the covid disruptor/disrupted themes and how quickly they are playing out. Below are some themes from covid. Would love to hear anything else you guys are seeing in terms of themes. I just wanted to have a discussion on how you think the world will change post covid and how permanent some of the drivers for these trades may be.
Homebuilders - flight to the suburbs creating incremental demand from millennials looking for more space on top of an underbuilt supply dynamic - the entire value chain and ancillary industries such as furniture etc. Think this trend will have some legs but you can easily make the counterpoint if the consumer employment stays elevated, govt money leaves etc.
WFH - obviously the Zooms of the world, tech beneficiaries
Indoors entertainment - Video games, streaming etc.
Outdoors - Crazy to see the outdoor trade really work - RV's, Powersports etc.
Safety/Security - Riots/protesting and crimes spikes in major metros = Guns, security systems etc
Teladoc - Here to stay, my father works at a large health insurer, this trend isn't going away
E-commerce - clearly e-commerce has accelerated and is most likely going to be a permanent shift due to covid. Obvious beneficiaries are e-commerce retaiers etc. but also Industrial REITs, Fedex etc.
Grocery/Packaged foods - self-explanatory, eating out less, eating in more.
Food delivery - Mom and pop restaurants shutting down in mass numbers - 14% of CA restaurants are gone permanently. Clearly food delivery is a great way to play it, but also restaurants that will take share from these closures and have the resources to push a takeout/digital offering. Chipotle has been great here.
Sports betting/I-gaming - Not really a covid theme and getting to be a little crazy at this point from the hype angle but i-gaming obviously
Then on the short side you can basically think about the opposite of these themes and you get the obvious brick and mortar retailers, travel. Office REITs - will people work in offices again.
I will come back and add to this. It's late on a Sunday and lost my momentum.
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