Polar Capital Technology – 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 seemingly few barriers to mass adoption puts the technology sector at a profound moment in time, with corporate spend on AI set to rocket, he adds.

While the mega-cap technology stocks outperformed in 2023, Ben expects a broadening of performance among mid- and small-cap AI beneficiaries this year. He states that PCT’s active management style could prove valuable after several challenging years. PCT’s 10.7% discount could be attractive given what seems an improved investment landscape – with the Fed indicating several rate cuts this year – and the substantial upside potential in the portfolio’s exposure to what Ben believes are AI beneficiaries.