In a recent Livewire article, we explored how AI capabilities have reached a pivotal inflection point, fundamentally reshaping our approach to global equities research and investment management. As an AI-powered global equities fund, we've witnessed two critical shifts converge: the emergence of "skills" that expand AI functionality, and the transition from conversational AI to loop-based automation. These developments have profound implications for software stocks and our investment strategies.
We've integrated AI deeply into our equity research process, building custom assistants with capabilities spanning email, calendar management, fund reporting, and market analysis. However, these advances have prompted us to reassess our portfolio positions. As Thomas Rice noted in our internal discussions:
"There's been a step change... my week just made it visceral."
This led us to reduce software exposure, including exiting our Atlassian position despite previous bullish commentary. We've refocused our strategies toward AI infrastructure plays like Nvidia and memory manufacturers, whilst initiating a position in Hut 8 following their US$7 billion data centre deal with Anthropic. For a long/short fund, staying right as facts evolve is paramount—particularly when AI moves in dog years.
To read the article, click the link below.