The electrical grid is being heavily strained by a rebounding economy and artificial intelligence use. That’s creating demand for grid plays, according to Calamos Investments portfolio manager Tony Tursich, who specializes in sustainable equities.
Electrification, as well as the shift away from carbon-generated electricity, is a long-term growth trend, Tursich says. Supply must increase to meet electricity needs, meaning the grid must expand as well. But that’s happening too slowly; the electricity infrastructure is outdated.
Tursich dubs himself a “diversified core quality investor” who seeks companies with good returns on capital, returns on equity, and high margins, and that are increasing revenue faster than their peers.
This post originally appeared at Morningstar.