As with any major innovation, there will be winners, losers, and bumps in the road as the AI story continues to unfold. Beyond asking which AI companies will win, we are asking how portfolios should be positioned as the AI investment cycle evolves.
At this stage, we recommend that advisors and their clients consider alpha diversifiers beyond the major AI companies and passive strategies. While we see the potential for outsized long-term gains from AI, the short-term may include periods of correction, especially for the hyperscalers.
As such, our core models retain a market weight allocation to AI companies complemented by other growth drivers. Our thematic SMAs and Climate Alpha UMA can be added alongside existing allocations to broaden exposure to parts of the market that both benefit from AI's growth while providing exposure to our long-term structural themes: Energy Addition and Climate Adaptation.
This quarter, we will also be joined by Jamil Wyne, Founder of the Hazelwood Network, a global climate innovation company that provides research, develops venture programs, and supports climate entrepreneurship worldwide, to discuss climate adaptation and resilience solutions in relation to the AI buildout.
We invite you to join us, where we’ll discuss the macro forces shaping the markets and how we translate that into our portfolios.
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