Capitalizing on Market and Economic Trends in Cybersecurity

Over the past decade, we’ve seen massive growth in the technology sector, leading to more and more personal data being shared online—which in turn creates a tremendous market for accessing that data illegally. Every day, hackers can open up a veritable playground of valuable information to steal from both individuals and businesses. And while many companies have implemented robust cybersecurity programs, the constantly changing landscape means they require constant investment to keep up with criminal activity.

Finally, like it has with just about everything else, the COVID-19 pandemic has had an impact on cybersecurity. More individuals working from home opens up more vulnerabilities to hackers, meaning the cybersecurity market will have to grow to meet this new demand. 

Growth in the cybersecurity market represents a powerful new opportunity for investors.

Benefits of Cybersecurity Exposure

Now:

  • More people are working from home, creating the demand for more cybersecurity tools 
  • Incidences of cybersecurity breaches have been increasing
  • Performance has exceeded overall market and is expected to accelerate

Moving Forward:

  • As IT growth continues, the industry will require more security infrastructure 
  • More cybersecurity tools will be required as growing markets such as self-driving cars, smart devices, etc. continue expanding

Orion Portfolio Solutions’ Cybersecurity Strategy

To help advisors capitalize on the momentum of the growing cybersecurity market, Orion Portfolio Solutions is introducing a new cybersecurity strategy, which will focus on 30 companies. Securities in the strategy will be equal-weighted—an approach that provides both a small-cap tilt and greater diversification than could be achieved with a market capitalization weighted approach. The strategy will be rebalanced quarterly.

Using this strategy, investors can diversify their equity exposure and gain access to a subset of IT companies poised to achieve tremendous growth in the cybersecurity field. 

The Orion Portfolio Solutions Cybersecurity Strategy will be managed by Senior Quantitative Portfolio Manager, Horacio Carias, CFA, and Director of Investment Technology and Solutions, Chris Romano, CFA.

Trending: Thematic Investing

Thematic investing offers two distinct benefits:

  • Diversification: Thematic investing can offer investors risk exposures that are not highly correlated with the general economy
  • Communication: Thematic strategies are often already known or top of mind for clients, helping to create more fluid conversation about portfolio exposure

Earlier this year, we introduced two thematic strategies: Biotech and Metals & Mining. With the addition of Cybersecurity, we continue to quickly and efficiently meet the demands of our clients for innovative investing options. 

To learn more about our Cybersecurity strategy, check out our on-demand webinar now!

 

2961-OPS-11/06/2020