Markin AI Boost

Account Minimum:
$100K

Model Inception:
11/1/2023

Mngmt. Fee:
0.75%

Investment Objective

Long-term capital appreciation with alpha.

A Diversified Approach to Investing in AI

The strategy consists of US companies that are pursuing AI or helping to enable new AI-related technologies in the following industries: semiconductors, tech hardware, software, IT services, media, and internet.

The strategy provides exposure to a core group of US large-cap AI enablers in a managed, diversified portfolio with a long-term alpha focus.

Stocks are weighted according to EPS (Earnings Per Share) potential while also optimizing the portfolio for liquidity. As such, the portfolio is substantially more diversified and less concentrated than market cap weighted technology or telecommunications sector indexes.

Investment Approach

The strategy invests in approximately three dozen US large-cap stocks across the AI technology, media, telecommunications universe. It seeks to outperform capitalization-weighted indexes through a disciplined, top-down, bottom-up investment approach that provides exposure long-term EPS growth and proven drivers of returns.

The portfolio is constructed to have greater diversification and less concentration than cap weighted technology sector indexes. For example, the total weights of the top 5 stocks in the portfolio is approximately 20 percentage points less than in many market capitalization weighted technology sector indexes.

The strategy is actively managed and exposures to individual stocks will vary based on the evaluation of investment opportunities. These shifts in exposures are determined using fundamental analysis and quantitative models. Information that is evaluated to arrive at the strategy’s views includes, but is not limited to: earnings, cash flows, trend indicators, and growth forecasts.

Reasons to Invest

Opportunity to Outperform Over the Long-Term

The strategy seeks to outperform US large-cap equities by investing in stocks with higher long-term EPS growth prospects based on historically proven drivers of returns such as profitability, sales growth, margin expansion, momentum, and quality.

Systematic Investment Approach

The strategy systematically integrates quantitative and bottom-up fundamental analyses into one investment view with the hope of overweighting stocks in the universe that exhibit the most attractive investment characteristics and have yet to fully price in the potential EPS boost.

Broadly Diversified Portfolio

The strategy invests in the full spectrum of stocks across the US AI large-cap universe. It seeks to benefit from holding numerous active positions rather than fewer, more concentrated bets.

* The materials contained on this website do not constitute investment advice or research and should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or to adopt any investment strategy. Past profitability is not indicative of future results.