ZIP rallied 363% in 2024; Pendal's Rachel Folder says the growth is just getting started

Note: This interview was taped Tuesday 10 December 2024.

Things are looking pretty good for 2025, according to Pendal Group investment analyst, Rachel Folder. 

Whilst things never move in a straight line and it's "never linear how we get there", notes Folder, "if we're sitting here this time next year and things are looking better than they are now, I'd be happy with that". 

In the following interview, conducted as part of Livewire's 2025 Outlook Series, Folder reflects on 2024, emphasising the resurgence of risks and the impact of a government change in the US. Despite these challenges, she views the market's current state as strong.

As a small-cap equities analyst at Pendal Group, Folder works within a focused team managing a small and micro-cap fund. The team prioritises quality over strict value or growth strategies, employing a collaborative, iterative approach to investment decisions.

As for what Folder loves about markets? 

"It's different every day and the feedback loop that it provides", notes Folder. 

"Going through that process of discovery, getting excited about something, and then finding out if you're right or wrong... I think those moments are really rewarding."

As well as reviewing 2024 and providing a view for 2025, Folder also highlights her top stock picks in the following categories; 

• The #1 growth stock for 2025
• An industry set to break and the stock to play it
• A stock to avoid over the year ahead
• The contrarian stock idea that could prove fruitful
• The one stock she would hold for the next 12 months