In this sneak peek from the quarterly TheStreet Pro members’ call, portfolio manager Chris Versace explained why he has an eye on Bright Horizons (BFAM) as the return to office trend gains steam.
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Transcript:
CHRIS VERSACE: Amazon (AMZN) CEO Andy Jassy really put a shot across a lot of bows, if you will, when he said that starting in January, Amazon’s going to be going back to the office five days a week.
Now, if you do a little homework, you would understand that roughly 33% or so of most companies have people in the office four or five days a week. But to the extent that we see more companies bring people back for more days during the week, it could be four, it could be five. Odds are we’re going to have to see a little bit of a carrot, not a stick to get people to re-embrace that.
That could be a variety of different benefits. But we do know that if people are going into the office more, child care is going to become an issue for a lot of folks. That’s why we took a look at Bright Horizons, ticker symbol BFAM, and we added it to the portfolios bull pen.
Now, is this something that is going to make it to the portfolio? We’ll have to see. If we see more companies kind of copying what Andy Jassy at Amazon had to say, pushing or more folks back in the office more days in the week, then this will be something that, at the right price, we may call up into the portfolio. But just because a stock is entering into the bullpen does not guarantee it will make it into the portfolio.
So I would just remind that with folks, a note of caution, let’s not get ahead of ourselves. But again, if we see that structural shift reverse from work from anywhere back to return to office, we’ll be doing a lot more homework on Bright Horizons.
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