Electric vehicles, autonomous driving, and the future of the automobile have been getting a lot of attention these days, both in the media and the stock market. New vehicle-related technologies will undoubtedly have a profound impact on how we live our lives, and where resources and capital is allocated, but the question that remains is one of timing.
Tyler Hewlett, director and head of Canadian growth equities at BMO Global Asset Management, believes the adoption of electric vehicles (EV) and autonomous driving creates opportunities for companies on both sides of the playing field: those that are directly involved in these industries, and those that are being unduly punished by the market.
Hewlett’s bottom-up stock-selection process as portfolio manager of BMO Canadian Small Cap Equity Fund, which he’s worked on for more than 11 years, and currently manages with David Taylor, is entirely fundamentally focused. They target companies with stable growth that can continue for many years.
“While we’re starting from a low base, both electric vehicles and autonomous driving certainly seems to be accelerating,” Hewlett said. “We think it is a trend that’s not going to stop.”