Emperor Blog
We have recently sent out a blog discussing our recent performance as well as how we are diversifying both locally and internationally. We mentioned that we are focusing on tech companies, specifically e-commerce and cloud companies in our USD bundle and unit trust. Locally our focus has been materials which includes mining, paper, chemicals etc.
Asset management is the art of searching for opportunities and creating wealth for investors with the lowest amount of risk. Part of our job is looking for great companies at great prices. Tech companies are super exciting, and we see the future headed more and more in this direction.
In this blog we discuss Artificial Intelligence (AI), in general and how a few of our shares are utilizing the technology.
Artificial neural networks and deep learning artificial intelligence technologies are quickly evolving, primarily because AI processes large amounts of data much faster and makes predictions more accurately than humanly possible.
AI, sometimes used interchangeably with Augmented intelligence is the theory and development of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.
Organizations that use AI see improved customer satisfaction and revenue increases while reducing costs. Advances in the field have taken over most sectors of the technology industry. The increased hype around AI has prompted merchants to bump up their use of AI in their products and services
An event like the coronavirus pandemic may stimulate long-term operational adjustments, such disruptive events which can be devastating to some but also brings opportunity for those that are quick to adapt. Emperor Asset Management, through our algorithms have identified those companies that are leading the change and gaining market share.
Below we explore some of the recent additions to our US Equity portfolio and why we think they are good investments.
Atlassian Corporation Plc is an Australian enterprise software multinational that develops products for software development, project management, and content management. Atlassian does not have a sales team, they rely on the company website. Atlassian employees now have the freedom to decide where to work, could be from home, the office, or both even after the coronavirus pandemic. Recent acquisitions include AgileCraft (rebranded as Jira Align), a service that aims to help enterprises plan their strategic projects and workstreams and Halp (Halp is a modern ticketing help desk). With low acquisition costs, a large customer base and lower pricing the company has better growth prospects against competitors such as ServiceNow and Splunk.
Atllassian is a leader in using AI to streamline every phase of the Software Development Life Cycle (SDLC) - Jira Software from Atlassian, widely considered the industry standard in this area of DevOps.
- AL and ML to autosuggest code segments or snippets in real-time
- AI is proving effective at improving the accuracy and quality of requirements documents
- AI used in bug detection and auto-suggestions for improving code
- ML-based code vulnerability detection in real time
Etsy: is a marketplace of over 2.8 million sellers often providing unique items (88% of buyers say that they found a unique item that couldn’t be found anywhere else). This is challenging as with so many nonstandard items on its website search is complex. Etsy meets this challenge with "world-class search and discovery technology" powered by machine learning and artificial intelligence.
Etsy's Chief Product Officer Kruti Goyal explains that company uses machine-learning models to personalize the search results to match shoppers' tastes and present items that would most resonate with them.
AI-powered search is a core competency for Etsy as it looks to grow and expand its "special retail" space.
Lululemon Athletica, is an athletic apparel retailer domiciled in Delaware and headquartered in Vancouver. Founded in 1998 as a retailer of yoga pants and other yoga wear, Lululemon has since expanded to sell its products internationally in 460 stores as well as online. LULU embarked as early as 2017 on a journey to reach 1 billion people worldwide and double their revenue. Learning from the behaviors of their customers and adjusting accordingly. The company pays special attention to web visits, email communications, social media and mobile engagement to target the right quests and drive traffic towards their stores. It is one of the companies that were quick to respond to the changing times long before there was a crisis. The share price is up 47% this year is USD.
Lululemon has recently purchased MIRROR. MIRROR operates “an interactive workout platform with weekly live and thousands of on-demand classes in areas such as cardio, strength, yoga and boxing”. The company’s technology involves the use of a mirror screen to show content in much the same way as competitors such as Peloton. Lululemon is thus attempting to build an ecosystem of digital experiences, including exercise and mindfulness offerings.
NVIDIA is known for making graphics processors (GPUs) for gaming and computers. But NVIDIA's chips are used in a variety of ways. The company's GPUs are used in Amazon, Google, and Microsoft AI data centers. NVIDIA continues to release new artificial intelligence hardware, including its recent A100 Tensor Core GPUs, which allow data centers to accelerate both AI training and inference. In the most recent quarter, NVIDIA's data-center revenue spiked 80% to $1.1 billion.
You have to agree that the services offered by these companies are pretty cool, and most importantly, it is interesting to see more brands using technology to optimize their offering.
We will continue to keep you invested in shares that we believe will change lives and make our investors some great returns over the long term.
Disclaimer:
Terms and conditions apply. Emperor Asset Management (Pty) Ltd is an authorised financial services provider (FSP no. 44978). The value of a financial product can go down, as well as up, due to changes in the value of the underlying investments. An investor may not recoup the full amount invested. Past performance is not necessarily an indication of future performance. These products are not guaranteed. This document is for information purposes only and does not constitute or form part of any offer to issue or sell, or any solicitation of any offer to subscribe for or purchase any particular investment. Opinions expressed in this document may be changed without notice any time after publication. We therefore disclaim any liability for loss, liability, damage (whether direct or consequential) or expense of any nature whatsoever which may be suffered as a result for which may attributable directly or indirectly, to the use of or reliance upon the information.