Last checked at 9 Jan 2024 12:56
Polar Capital Technology - Update from QuotedData
9th January 2024
The AI's have it
Polar Capital Technology's (PCT's) manager Ben Rogoff's conviction levels on the potential of artificial intelligence (AI) have risen, reflecting the all-encompassing possibilities of the technology. His bullishness is displayed in the make-up of PCT's portfolio, which is weighted almost 80% towards stocks that he believes are AI beneficiaries or enablers. The potential for huge productivity gains - which could boost global GDP by 7%, according to Goldman Sachs - and few barriers to mass adoption puts the technology sector at a profound moment in time, with corporate spend on AI set to rocket.
While the mega-cap technology stocks outperformed in 2023, Ben expects a broadening of performance among mid- and small-cap AI beneficiaries this year. PCT's active management style (trying to beat the benchmark through asset allocation) could prove valuable after several challenging years. PCT's 10.7% discount to net asset value (NAV) seems very attractive given an improved investment landscape - with the US central bank (the Federal Reserve - the Fed) indicating that it foresees several interest rate cuts this year - and the substantial upside potential in the portfolio's exposure to AI beneficiaries.
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