Lazard: Our Investment Focus

I am reading the "Outlook for Global Equity Markets, 2009Q2 Outlook" by Lazard, and a paragraph written by Ronald Temple catches my eye:

We believe that this cycle is anything but a typical one, and that managers who look backward for guidance are likely to destroy value for their clients. In our opinion, now more than ever, it is imperative to be forward looking and to understand the changing environment in which companies operate. We believe this is a cycle in which the strong will not only survive but also get stronger. A common view is that lower-quality companies provide the best offense during the early stages of an economic recovery. It is our view, however, that in a world where financial leverage will be more difficult to access, and more costly, the next economic upturn will be characterized by industry leaders gaining market share, expanding their competitive leadership, and leading the way in a stock market upturn. The elements that comprise our investment focus are honed to identify such companies. While many of these leadership companies have been viewed as having defensive characteristics during the downturn of the past six quarters, we believe they will come to be viewed as the new offensive ones.

So far the equity rally since March 6th is led by loooooooooooozers ....