In a world gone mad, it’s all about earnings growth for Catriona Burns

Markets have a habit of testing investors’ conviction, and the past six months have been a case in point. Share prices have often moved on factor rotations, narratives, and momentum rather than fundamentals, leaving many high-quality businesses sold off despite delivering strong underlying results. For investors trying to look through the noise, that has created both frustration and opportunity. Few managers have been as explicit about where they see the market ultimately heading as Catriona Burns, Lead Portfolio Manager of the WAM Global Fund. With more than two decades of experience across Australian and global equities, Burns has spent recent months leaning back into first principles: over time, earnings growth matters most. In this conversation, we discussed why the market has become so disconnected from fundamentals, what that means for portfolio construction in 2026, and where she is finding opportunities amid indiscriminate selling, particularly across software, healthcare, and infrastructure. As Burns puts it: “I think you’ve got to concentrate and focus on earnings growth. Eventually, we will get to a point where the market refocuses on earnings. And if a company can consistently grow compound earnings, and it has a rational management team that is even taking advantage, like doing buybacks into current weakness, then ultimately earnings will drive share prices.” That philosophy underpins how she is positioning the portfolio today and the stocks she believes are best placed when the market’s attention returns to fundamentals. For the full experience, watch the video above. You can also read a summary below. Please note this interview was recorded Wednesday 4 February 2026 TIME CODES 00:03 – Introduction: A volatile, factor-led start to 2026 00:46 – Factor versus fundamentals: Why earnings have stopped mattering (for now) 02:35 – Staying disciplined: Quality, valuation, and process in distorted markets 03:43 – Rates, the Fed, and growth: Why the US backdrop still looks supportive 06:44 – Inflation and risk: What could force markets to refocus on quality 08:21 – Portfolio positioning: Where WAM is leaning in and pulling back 10:20 – Stock ideas: Thermo Fisher Scientific and Quanta Services 12:59 – Adding on weakness: Scout24 as the “REA of Germany” 14:34 – Investor takeaway: Why earnings growth ultimately wins