Ashfield Published in Real Assets Adviser: Investing in Cybersecurity in the Age of Ransomware

The COVID-19 pandemic acted as an accelerator for many trends, some of the largest being companies transitioning to a work-from-home environment and brick-and-mortar stores moving to e-commerce websites. These relatively quick transitions created a challenge for many corporate IT managers and an opening for cyber criminals. As a result, there has been a major uptick in companies turning to cybersecurity software, which in turn has opened the door for opportunities for investors within the sector. To help investors learn more, Real Assets Adviser republished an article by Ashfield Capital Partners Portfolio Manager Lyman Howard that provides further insight into investing in cybersecurity in the age of ransomware.

“Cybersecurity has become an issue of existential importance to many organizations, forcing management to devote greater resources to fortify and monitor networks. Every employee working outside the office has the potential to become a weak link in their defenses, maintaining the urgency to defend the network. It serves as a call for both heightened personal diligence and, at the same time, creates a potential opportunity for investors,” Howard explains.

For investors seeking to invest in this long-term secular tailwind, what’s important is selecting the right investment with a solid profit margin, sustainably growing sales, and a competitive position that makes it easy for customers to pay for the product while making it difficult for a competitor to enter. “Seeking out companies that exhibit these characteristics is a potential recipe for investment success, and there are good companies in the cybersecurity landscape today fitting this profile,” Howard explains.

Click here to read the entire article in Real Assets Adviser.

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