LONDON – Polar Capital technology Trust PLC (LSE:LON:) has expressed confidence in the current environment for active management within the artificial intelligence (AI) driven technology sector. According to a recent statement, the fund manager believes that diversification outside the ‘magnificent seven’ of tech stocks, which include industry giants like Apple (NASDAQ: ) and Microsoft (NASDAQ: ), creates new investment opportunities.
The fund’s active share, which measures how much the fund’s portfolio differs from the benchmark, is a significant 50%. This reflects the expectation that the performance gap between large-cap and small- to mid-cap technology stocks will narrow. The manager’s ability to identify potential winners in the AI space has been highlighted as a key asset, particularly as the fund currently trades at a 12.3% discount to its net asset value (NAV).
The rapid growth in AI innovation, capital spending and adoption rates since the last report six months ago is seen as a positive sign against concerns about an AI-induced technology valuation bubble. Corporate adoption has increased, with many use cases showing significant gains in efficiency and productivity, which could lead to accelerated adoption of AI technologies.
The information for this review comes from a press release from Polar Capital Technology Trust PLC.
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