Platinum finding mispricing opportunities in AI
With artificial intelligence (AI) thriving, Platinum investment manager, Cameron Robertson, believes there are still mispricing opportunities available in the space.
In an update, Robertson, who was manager of the Platinum Asia ex-Japan strategy, elaborated on how AI was being widely used across a variety of sectors.
AI had come to the fore this year with the launch of ChatGPT from OpenAI that was a natural language processing tool driven by AI that allowed the user to have human-like conversations with the chatbot. Other versions from Microsoft and Google had also been developed with similar capabilities.
Platinum had particularly already invested and sold a stake in Chinese software company Kingsoft Corporation to benefit from the trend, with the manager describing its share price performance as “euphoric”.
This company’s word processing software WPS had announced its own plans to develop a generative AI tool that would be able to create emails and articles in response to prompts.
Nevertheless, Robertson believed there were still opportunities present to benefit from the possibilities.
“As an investor, it’s interesting to see how the market responds to the theme and you can see share prices adjust quite materially, both positively and negatively,” Robertson said.
“We are finding opportunities where the market isn’t appreciating what this change will mean for their businesses and so we think there are mispricings arising out of that change whether that’s in healthcare or in manufacturing.
“You always have to be on the lookout for how change is creating opportunities.
“AI is going to disrupt the status quo in a lot of areas, there is a lot of hype in markets around some of the players but there are also areas that are being overlooked. So the opportunity is to find those overlooked areas which will benefit from this and add them to portfolios as a result so we can benefit as investors.”
Fellow Platinum portfolio manager, Bianca Ogden, who was manager of the Platinum International Health Care fund, also speculated on how AI was thriving in the healthcare space. This included in the biotechnology space where new companies were being formed to use AI for drug discovery.
“A lot of these companies, their valuation is not really recognising the opportunities that they have in the future, at the moment everyone is waiting for clinical proof of what they do but we are seeing the capability they are accumulating is so vast that they will be competitive in the future to develop their pipeline,” Ogden said.
AUTHOR
Laura Dew
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
