Dwight P. Robinson, a brilliant Harvard-educated analyst was recruited to lead and run the department.4 Not only was he MFS’ first director of research, but he was also the first director of research in the industry. Both Robinson’s appointment and his approach were groundbreaking, as he engaged in a detective-like process, redefining what the industry considered fundamental research and placing a strong emphasis on statistical analysis.5 Robinson’s research department was built out with MFS’ first advisory board, so that together they could carefully scrutinize all investment opportunities to make the best possible decisions.
Early on, MFS recognized that being on-site and in person reveals just as much about a business as its balance sheet. Before committing any funds to an investment,6 there were visits to plants, factories and company headquarters, as well as meetings with senior management.
Robinson’s tactics of poring over financial statements and market reports and making analytical site visits continued with the next generations of MFS researchers. As David Antonelli, a research analyst who joined the firm in 1991 and went on to be equity CIO and vice chair, explained, “Our approach today remains a ‘bottom-up’ process that requires ‘kicking the tires’ of a company, regardless of market or location, and meeting with senior executives to ask ‘probing questions’ informed by expert, long-term investment analysis.”
What Robinson began not only catalyzed the building of MFS’ research department, it also became foundational to MFS’ active management philosophy — the necessity of understanding everything material about a portfolio company to determine whether or not it can create long-term value. Over the past 100 years, MFS’ teams of expert researchers have analyzed countless prospects, from early microwave technology in the US, to the viability of a grocery store chain in the UK to a Finnish cell phone innovator.7
A department that started with one fund in 1932 grew into a global research platform, fueled by the same purpose with which it began. “We really believe in our hearts and our souls,” said present-day MFS President and Head of Global Distribution Carol Geremia, “that we need to understand everything that we own with other people’s money. That’s why we committed to active management . . . and that’s why we have built the research platform that we have . . . because we want to get to the best information, the best idea that we possibly can, before we make an investment decision.”
Please note: Not all of the funds included in this material may be available for sale in your country.
Endnotes
1Griffeth, Bill. The Mutual Fund Masters. (1995) Probus Publishing. Page 20, 25.
2Wilson, Julia A. A Story of Progress: On the Twenty-Fifth Anniversary of Massachusetts Investors Trust. (1949) Massachusetts Investors Trust. Boston. Page 14.
3Wilson, page 14.
4Wilson, page 6.
5Wilson, page 13.
6Wilson, page 13.
7Wilson, page 9.