Okta: Rebounding On Agent Hype

Company Overview - Okta's stock has seen a positive shift from investors over the past 6 months despite tepid revenue growth, with impressive margin gains reported [1] - The company's Remaining Performance Obligations (RPO) growth indicates potential revenue increases in the future [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to misunderstandings of long-term business prospects [1] - The firm aims for excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with high barriers to entry [1] - Narweena's investment approach emphasizes company and industry fundamentals to uncover unique insights, with a preference for smaller cap stocks and less obvious competitive advantages [1] Market Trends - An aging population with low growth and stagnating productivity is expected to create new investment opportunities distinct from historical trends [1] - Certain industries may experience stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - Other sectors may face rising costs and diseconomies of scale, impacting overall market dynamics [1] - The economy is increasingly influenced by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A growing pool of capital is competing for a limited number of investment opportunities, resulting in rising asset prices and compressed risk premiums [1]