Amati Insights

Discussion on defence spending, following recent record high US defence spending bill and spending increases by other developed nations. We will look at how technological change and innovation is changing the defence industry, touching on areas such as drone warfare, advanced sensors and computing.

US Department of Justice last week filed a lawsuit against Alphabet/Google, seeking to break up its advertising business. This continues the seismic shift in the digital advertising industry, driven by both regulatory pressures and technological changes. Two leading digital advertising platforms - Alphabet and Meta, bellwether "big tech" stocks - had also just reported eventful sets of results. Anna Macdonald and Mikhail Zverev discussed how this impacts digital advertising landscape, what are the risks, and where do we find mis-priced growth and innovation opportunities, in both our Global and UK funds.

The energy market disruption caused by the invasion of Ukraine has caused many countries to rethink their energy strategy. The drive towards net zero provides an obvious preference for low carbon generation, but the need for consistent baseload power means that renewables cannot be the only answer. This need, combined with advancing technology is driving a return to nuclear energy. Georges Lequime and Graeme Bencke will discuss the changes taking place and the outlook for the key associated commodity, Uranium.

Lithium prices have soared almost 10 fold over the past two years as the growth lithium-ion battery production outpaced the available supply of the crucial raw material. With new supply coming on stream, both from existing mine expansions and from the first of a wave of new developments like Sigma Lithium in Brazil, and with Chinese EV demand having been weaker than expected in early 2023, the price is now easing. With EVs forming a significant plank of the initial global drive to lower carbon emissions, the rate at which demand rises will be linked to the success of EV roll out and all the implications this has for expanding power generation and grid capacity. New supply of lithium is highly dependent on the delivery of some large mining projects on time, something which is rare in the world of mining. In the mix, Western Governments want reduced dependence on China. This is a microcosm of many investment conundrums which arise from the challenge of energy transition. Graeme Bencke and Paul Jourdan discussed how this might play out over the new few years.

Dr Paul Jourdan and Mikhail Zverev will discuss the failure of Silicon Valley Bank in the US last week, regulatory response and the emerging contagion risks. Managers will consider possible implications for the bank depositors, banking sector stability and regulation and Amati portfolios and positioning.

The next few years will bring a sharp increase in the number and variety of autonomous machines in use across industry and commerce. From inspection drones to warehouse robots and from autonomous cleaners to self-guided tractors. Unmanned mobile machines are quickly becoming part of normal life and this is being made possible by the development of increasingly cheaper and more technically sophisticated sensors. Join David Stevenson and Graeme Bencke to discuss the developments in machine vision and some of the opportunities being uncovered in both our UK and Global funds.

ChatGPT has gained rapid popularity and wide publicity since launch. In our opinion, it represents a new chapter in AI and machine learning technology, with far reaching implications. Amati fund managers Mikhail Zverev and Graeme Bencke will discuss the progress so far and consider investment opportunities and risks arising from this technological change.

Tesla results and the threat of electric vehicle price war. Tesla has been reducing the price of its electric vehicles in the recent months. In its results announcement, CEO Elon Musk suggested more price cuts are possible, causing the stock to fall 10% on the day. There is talk in the industry of EV price war, on the backdrop of softening macro environment. Amati fund managers Mikhail Zverev and Graeme Bencke will discuss the environment in the EV market and implications for carmakers and the supply chain.

Although most stock markets are in positive territory so far this year, the benign headline numbers mask some intriguing dynamics within. Join Amati fund managers Scott McKenzie and Graeme Bencke for the next Insights call as they discuss the underlying trends across both Global and UK markets, and some of the interesting investment opportunities they see.

Innovation in the life sciences is happening at an ever increasing pace. New tools and technology are revealing richer detail and more insights about health and disease than ever before. These insights translate into vast addressable markets. While still in its early stages, it will continue to have a large impact on clinical applications and patients. Join Dr Gareth Blades and Graeme Bencke who will discuss this changing landscape.

Commercial real estate has been in focus in recent months, with worrying headlines regarding falling occupancy, drop in valuation and risk of debt defaults. Amati fund managers Scott McKenzie and David Stevenson will discuss both the UK and Global perspective on this issue and highlight areas where they still see opportunities to generate return in the sector.

Before we enter the (hopefully) quieter summer months, fund managers, Graeme Bencke and Mikhail Zverev will discuss some of the big open questions in front of the team that will be the focus of our investment thinking this summer.

Paul Jourdan and Mikhail Zverev will share their summer reflections on themes in global markets and the Edinburgh Festivals, from Generative AI boom to China economic stumble, from re-industrialisation of the West to oil & gas industry boycotts.

The obscure but exciting world of bioprocessing. You may have seen press headlines about break-through obesity treatments, promising progress in Alzheimer therapy or cure for previously incurable cancers. Gareth and Mikhail discuss how the bioprocessing industry has become a key enabler of this innovation, why now is a good time to look for opportunities on the sector and what choices they have made for our funds.

We have all seen headlines and political debate on diluting net zero commitments, from low emission zones to EVs to renewable energy. Beyond politics, there are objective economic headwinds – cost inflation and higher interest rates made previously feasible projects untenable. We have seen project cancellations and guidance downgrades across renewable energy space. Amati fund managers Mikhail Zverev and Graeme Bencke will consider the implications and talk about how they’re navigating this complex environment in the Amati Strategic Innovation Fund.

The photonics industry are unsung heroes of the digital revolution. The technology that brought us fast home broadband is also accelerating AI in the data centres, connecting 5G networks and may even replace copper wires between server chips. Amati managers Graeme Bencke and Mikhail Zverev discuss long-term opportunities and near-term challenges that the industry is facing and their picks for the Amati Strategic Innovation fund.

Semiconductors are one of the most dynamic sectors in the global market, and UK small caps also present interesting opportunities to benefit from semiconductor industry growth. Amati managers David Stevenson and Mikhail Zverev discuss key themes driving the industry and where they see opportunities in both global and UK stocks.

Radio Frequency Identification technology is starting to change our everyday life. It enables automated self-check-outs at retailers Uniqlo and Zara and will power parcel tracking at UPS. In more specialist applications it will drive safer pharmaceuticals supply chain, auto parts quality control and EV battery recycling. Amati managers Graeme Bencke and Mikhail Zverev discuss why RFID matters and what opportunities do they see to benefit from this technological change.

Before we break for Christmas and New Year, Paul Jourdan and Mikhail Zverev look back on 2023, share their observations on UK and global equity markets and talk about what they have changed in their positioning and the outlook for investors in 2024.

Join Dr Gareth Blades & Graeme Bencke as they discuss the outlook for the new, much publicised ‘GLP-1’ weight-loss drugs. What are they, how the competing products differ, and what are the implications for other weight and diabetes management approaches and the broader healthcare system.

The nature of warfare is changing and emerging new threats demand innovative technological solutions from the armed forces and the defence industry. Join David Stevenson and Graeme Bencke for an overview of what this means for the Aerospace and Defence sector and the opportunities this brings to UK and Global equity investors.

After several years of outflows we are now seeing early signs of recovery in the UK smaller companies sector. Scott McKenzie and David Stevenson examine why increasing share buybacks and healthy dividend yields are helping to underpin the compelling valuations now on offer across the asset class.

“Magnificent 7," largest US technology stocks, continue to dominate US and Global markets performance. Graeme Bencke and Mikhail Zverev will look at the underlying drivers, valuations and fundamentals behind this group of companies and discuss the world of innovation opportunities that lie beyond.

Big tech may get all the headlines, but innovation in healthcare is also progressing at a rapid pace. This week, Gareth and Mikhail from the Amati Global Innovation team discuss recent findings from a leading global healthcare conference.

In March, the US FDA approved a next generation surgical robot, the 5th generation Da Vinci robot, developed by Intuitive Surgical. This showcases rapid progress in “robotic assisted surgery”, an exciting Innovation Frontier that is transforming surgery field.

Join Dr Gareth Blades and Mikhail Zverev as they discuss why this is important, who the leading players are in this sector and what opportunities this presents for global and UK equity investors.

Recent geopolitical tensions and the disruptions through the pandemic have highlighted the risks of relying on globalised supply chains. The result is a wave of ‘reshoring’ and ‘near-shoring’ of production to avoid these problems in the future. Join David Stevenson and Graeme Bencke in the latest Amati Insights call as they discuss investing in the potential beneficiaries of this process.

The geopolitics of the unexpected gold price boom.

A conversation between Paul Jourdan, CEO of Amati Global Investors and Kieron Hodgson, Managing Director, Commodities & Mining Research at Panmure Gordon.