Opportunities

After posting a 16.6 per cent average annual return since 2014 and 31.8 per cent in FY20/21, the Cyan 3G Fund lost 35.8 per cent in FY21/22. So how does it feel, as a fund manager, when things head south in dramatic fashion? The fund’s co-founder, Dean Fergie, speaks to The Inside Network’s James Dunn.

With China’s recent policy shift prioritising domestic businesses over foreign alternatives helping to drive growth, investors should look for companies and sectors set to benefit from policy tailwinds, according to Ninety One’s Charlie Dutton and Mendy Zhang.

Large language models like ChatGPT are part of a long technology continuum driven by Moore’s law, the observation that transistor capacity doubles every two years. To get in on AI’s surging growth, says Munro Partners’ Nick Griffin, investors should focus on the big – and not-so-big – names already poised to come out on top in the “race to shrink”.

Despite increased volatility emanating from the banking sector, tech stocks have been supported by falling bond yields on fears the global economy could slip into recession this year, with big-name companies leading the gains.

Shifting market dynamics mean some of the investment themes that worked in recent years are set to give way to new opportunities. Man Group’s Andrew Swan and Prime Value’s Richard Ivers recently discussed the promising outlook for Asia and small-cap stocks, where it’s all about fundamentals.

Proactive management and stock picking are, in some ways, two sides of the same coin. But advisers and investors should be aware of their fundamental differences, according to HMC Capital.

Increased traffic volumes and higher earnings have provided valuation support for the infrastructure company, ClearBridge Investments’ Shane Hurst says, with the post-COVID-19 recovery positioning the business for solid growth.

While advisers are not yet seeing substantial client demand for semiconductor and chip stocks, the popularity of the AI chatbot ChatGPT has highlighted opportunities for Australian investors to gain exposure to the surging sector.

Markets have moved sharply to reprice Chinese assets upwards after the world’s second-largest economy signalled its reopening. However, some doubt the sustainability of the current bull market, saying key ingredients for a lasting recovery are missing.

Credit and equity markets both suffered a very bad 2022, as the collapse of negative correlation between stock and bond prices left no safe haven for investors. But 2023 could be a big year for bonds, and experts say investors waiting on the sidelines risk missing out.

Retail investors now have several ways to access private equity investment and its potential of resilient returns, particularly after a recession. But experts say investors should be aware this asset class also comes with some risk.

More and more companies are actively pledging to go carbon neutral by signing either the UN’s Climate Neutral Now pledge or the Net-Zero Carbon by 2040 pledge. Some heavy hitters have already signed up.