Artificial Intelligence (AI) describes programming computers to perform tasks that traditionally require human intelligence.
The current stage of AI is known as deep learning where artificial neural networks allow sophisticated and abstract models, as opposed to human-sponsored programming, to learn. Applications of deep learning include image, sound and pattern recognition and behaviour prediction. To achieve results, deep learning requires a significant amount of data and processing power.
AI currently excels at interpreting real world signals and its use is driving megatrends such as autonomous machines (cars, industrial robots) and smart infrastructure (public transport & power generation optimisation).
Nanuk’s AI portfolio exposure is through investments in four areas connected to those megatrends including:
- data management (handling large amounts of data)
- semiconductors (processing power)
- sensors (real-world signal interpretation)
- implementation (software, networking).
What does our exposure to AI look like?
The following is a summary of companies that we invest in or have considered based on their use of and engagement with AI technologies.
As a leader in cloud storage solutions Amazon is a trail blazer in data management. Amazon’s data centres allow companies to store, maintain and analyse their data growing data. One of Amazon’s selling points is their ability to provide AI tools for their customers, allowing them to maximise the value of their data. Another example is Cisco which specialises in equipment for these data centres.
Processing power which is necessary for AI programs to learn from data requires computer chips made from semiconductors. Lam Research, Applied Materials and Teradyne are major suppliers to the semiconductor industry. Nvidia design chips that allow computers to perform the many calculations needed for deep learning and provides software and services to the industry.
Currently in our portfolio are Continental, Valeo, TE connectivity and AMS who supply sensors which interpret real world data. We have also invested in engineering software companies Hexagon, Ansys and Dassault systems which help customers implement AI, and Accenture which provides consulting services to a wide range of businesses on AI.
All of these companies reflect some of the key characteristics typical of Nanuk’s holdings. Strong, established and profitable companies which Nanuk believes are under-priced by the market. Nanuk is excited about the opportunities brought about by AI to improve global resource efficiency and continue to deliver strong investment performance.
Tristan Patience
Investment Manager
Nanuk Asset Management
t: 02 9258 1604
m: 0421 741 310
tristan.patience@nanukasset.com
www.nanukasset.com