"Work from home" keeps working

Commentary15 days ago
Earlier this week, we saw a sharp rotation out of quality growth stocks (e.g., software, internet) and into beaten-down "value" stocks (e.g., airlines, cruises).
The cyclical-heavy Dow Jones index outperformed the tech-heavy Nasdaq by ~7% on Monday and Tuesday, the largest two-day performance spread since March 2001. The driver? Positive vaccine data from Pfizer, which brought the prospects of a broader economic recovery ever closer to reality.
Many investors repositioned portfolios to get exposure to stocks best poised to rebound once the world reopens. They sold the massive "work from home" (WFH) winners like Zoom and bought "away from home" laggards like Boeing.
But contrary to what this growth-to-value rotation may suggest, we think many "work from home" stocks will keep working for years to come. One of our Opportunities holdings, Upwork (UPWK), is a case in point.
Upwork operates an online employment marketplace. Looking for a web developer to build you a website for your coffee shop? Head to Upwork.com.
On one hand, the stock is clearly a WFH beneficiary -- after the initial COVID shock drove massive layoffs, workers flocked to the site to get hired. On the other hand, we don't think demand for freelancers will decline even when the world reopens. Per one report, 70%+ of hiring managers said they will maintain or increase their work with freelancers due to the pandemic. 
Incredibly, UPWK is already a 2-bagger for Titan clients (up +105% since mid-August) who've invested in Opportunities. WFH keeps working.
Rather than betting on a rebound in lower-quality cyclical stocks (like cruise lines), we prefer to bet on longevity of high-quality secular growth trends. 
What other WFH winners do you think are here to stay?

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