Investors, in an era where volatility whiplashes portfolios and headlines, are increasingly uncertain about which compasses to trust. Macro fears, rate hikes, geopolitical tension, inflation, and AI disruption have reshaped risk perceptions and left many fund allocators sitting on cash, waiting for clarity. That’s why this Forbes series speaks directly to the decision-makers managing real capital through real chaos. This time it’s growth investing.
In this second installment, I sat down with David Souccar and Rob Hansen of Vontobel, a firm synonymous with quality growth investing. Unlike many chasing speculative stories, Vontobel’s discipline is rooted in predictable businesses, durable moats, and measured conviction. As others pivot to value or hide in cash, Souccar and Hansen are leaning into long-term resilience with calm, concentrated portfolios.
“In a market shaped by noise, liquidity, and algorithmic speed,” they told me, “Vontobel believes slow, steady, and stable still wins the race.”
Their lens couldn’t be more relevant now.
Over the past two years, growth investing has been battered. Rising interest rates have compressed valuations, rotating investor appetite toward value, dividends, and defensive plays. Many fund managers have followed suit—abandoning growth for fear of further drawdowns. But not Souccar and Hansen.
Instead of fleeing the category, they’ve refined it.
“We’re not chasing growth for its own sake—we’re repositioning into defensible, quality growth that holds through recessions,” Hansen explains.
This isn’t growth investing at any price. It’s a deliberate pivot away from cyclical or speculative names and toward companies with enduring earnings power. Vontobel has increased its exposure to consumer staples and utilities businesses with recurring revenues, pricing power, and balance sheet strength. They’ve pulled back from industrial cyclicals and high-beta names, favoring what they call the “defenders” within their universe.
Their thesis is simple: some companies can grow even in turbulent environments. But to achieve that, they must be anchored in quality, predictable cash flows, proven management, and economic moats that don’t erode with rate hikes or policy shocks.
It’s not about finding the next explosive story. It’s about enduring the story that never breaks.
Defining Quality Growth, Not Speculative Growth
At Vontobel, quality growth investing isn’t about chasing shiny objects or betting on the next big disruption. It’s about identifying companies with deep moats, measurable histories of disciplined capital allocation, and earnings durability through cycles.
Souccar and Hansen are unapologetic about the bar they set. “We want proof, not just promises,” Hansen says. “If there’s no track record of quality and cash generation, we’re not interested.”
They make a clear distinction between true quality and speculative growth. SAP, with its recurring enterprise revenues and free cash flow discipline, fits Vontobel’s model. Despite its rapid innovation, Shopify faces margin pressures and competitive vulnerabilities that fail to meet Vontobel’s sustainability test.
Vontobel demands evidence: consistent returns on capital, stable margins, and cultures that quietly compound advantage. In their eyes, quality isn’t theoretical; it’s measurable, repeatable, and built into the business model itself.
Adapting To Macro Shifts Without Abandoning Strategy
Today’s market is shaped by deglobalization, AI disruption, and persistent inflationary forces. Yet despite this turbulence, Vontobel has refused to abandon its core philosophy.
“We haven’t changed what we look for. We’ve just changed where we’re most comfortable looking right now,” says Souccar.
Vontobel organizes its holdings into three strategic buckets: Leaders (secular compounders), Defenders (resilient cash-flow generators), and Opportunistic (special situations). In today’s environment, the team has tilted more heavily toward Defenders—businesses like utilities and consumer staples where pricing power and recurring revenues offer ballast against economic shocks.
Rather than chasing macro trends, they’ve subtly rebalanced within their framework, prioritizing resilience without sacrificing quality. It’s a tactical adaptation inside a fundamentally consistent long-term playbook.
Managing Risk In A Concentrated Portfolio
While concentration often elicits criticism, Vontobel views it as a sign of calculated conviction rather than recklessness. Their portfolios typically hold between 30 and 40 names, each chosen through rigorous quality screens and deep business model analysis.
“We don’t just diversify holdings—we diversify risk factors,” Hansen explains. “That’s how we stay concentrated without being reckless.”
Their method spreads risk across trends, geography, and economic drivers, even if the headline number of holdings seems tight. Exposure is carefully calibrated around business quality, not just sector labels. Clear capital allocation histories, pricing power, and minimal hidden liabilities are prerequisites.
In Vontobel’s world, conviction sizing isn’t about gambling; it’s about knowing exactly what they own and why.
Reframing The Long-Term Narrative
Markets and clients are naturally short-term thinkers. Quarterly earnings reports, headline volatility, and shifts in market sentiment constantly put pressure on even the most disciplined investment strategies. Vontobel’s internal challenge isn’t just picking quality names; it’s maintaining strategic patience through rough patches.
“When the world panics, we lean on predictability,” says Souccar. “You can’t build confidence on headlines—you build it on cash flows.”
They anchor both their portfolios and client conversations on predictability: recurring revenues, low capital intensity, and companies that generate steady free cash flow, even during macro dislocations. In volatile markets, psychological resilience is just as important as financial resilience. Predictable businesses give both.
Catalysts That Actually Matter
Vontobel isn’t looking for flashy, news-driven catalysts. Instead, they seek soft, operational triggers that slowly but surely move intrinsic value higher—margin expansions, steady cash flow growth, and operational efficiency gains.
“We don’t bet on surprises—we bet on misunderstood strength,” Hansen explains. Many of their best re-ratings have not resulted from dramatic announcements, but rather from quiet, consistent excellence that gradually compelled the market to respond to hidden quality.
Misunderstood Stories With Deep Growth Value
Not every excellent investment looks cheap on the surface. Souccar points to examples like Constellation Software or CTS Eventim businesses that at first glance seemed expensive but underneath revealed scalable moats, relentless reinvestment opportunities, and underestimated durability.
“Sometimes, you need to look twice,” says Souccar. “What’s mispriced isn’t always the number; it’s the narrative.”
By looking beyond multiples and focusing on capital efficiency, growth reinvestment rates, and competitive entrenchment, Vontobel consistently finds value others miss.
Investigative Research As An Edge
Merely relying on numbers doesn’t provide a complete picture. Their growth investing strategy takes due diligence a step further by employing investigative researchers—unaffiliated third parties who gather insights from employees, customers, and competitors.
“Spreadsheets don’t tell you everything. That’s why we send people into the field,” Hansen says. They probe management credibility, operational culture, and consistency over time—critical but often overlooked intangibles that separate fleeting success from sustainable quality.
Avoiding Optimization Overreaction
Portfolio turnover is inevitable in dynamic markets, but Vontobel resists the temptation to over-optimize. Instead of abandoning high-quality names on short-term volatility, they prefer to trim positions modestly while holding core convictions steady.
“We’re not trying to be perfect traders. We’re trying to be consistent stewards,” says Souccar. When one practices discipline around quality, they anticipate fluctuations rather than fearing them. Maintaining the integrity of their portfolio DNA matters more than chasing every incremental trade.
Why Vontobel’s Quality Still Belongs In Your Portfolio
In a world awash with macro noise and short-term speculation, growth investing with Vontobel offers something increasingly rare: discipline, predictability, and compounding resilience. For fund allocators sitting on cash and waiting for clarity, their message is clear: Quality businesses, when deeply understood and patiently owned, serve as the best compass in a fast-paced world.
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