AIQ For AI Exposure: Pay Attention To Value, Growth And Quality
Summary
- AIQ’s investment mandate is to track the Indxx Artificial Intelligence & Big Data.
- Since May 2018, AIQ had delivered a compound annual growth rate of almost 24%.
- As of January 3, the fund was long 87 stocks, with the key ten accounting for 35.6% of the portfolio. NVDA was its top investment with ~4.5% weight.
- Valuation is uncomfortable, but quality is fine.
- Almost 30% have Growth grades of B- or better. Digging deeper, I found out that close to 57% of the firms have at least 20% revenue growth (YoY), while 35% have the exact same forward revenue growth rate.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in AAPL, MSFT, NVDA, SHOP over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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