00:00AI needs to be part of your thesis. It's now the how. How do we express that now, that AI has done so well?
00:06Yeah, thanks for having me. It is actually a great time to talk about tag AI, especially this one.
00:12There are a lot of moving parts and a lot of rotation happening already.
00:16So in AI, I think, firstly, we are seeing rotation out of the giant tag names to the more value AI names.
00:28And secondly, investors are more selective. They are more cautious on the valuation.
00:34They would rather pick the names with high quality, but with reasonable valuation.
00:42So what it means is we will continue to see flows into, you know, emerging countries with tech companies such as Korea, Taiwan and even China and Japan going forward.
00:55And is it what part, I guess, of the tech supply chain? Obviously, North Asia in particular has a very big semi-focus.
01:03Is that still the most dominant theme in tech? Or are you looking, I guess, into more emerging areas like ESS, for instance, energy storage systems is shaping up to be sort of adjacent to it,
01:15but still very much related to the data center story?
01:17So the Asian countries have their own different landscape and distinct expertise.
01:25Say Japan, it remains to be a very important part of the supply chain.
01:30So they have the equipment, they have the robotics.
01:33And the materials.
01:34Yeah. And then Taiwan, they have the foundries.
01:36Korea, they have, you know, the big memory companies.
01:39And China, well, it's very diverse.
01:42They have e-commerce, they have the advanced manufacturing, EV tech, et cetera.
01:48So, you know, as an investor, we always like to invest in tech, but across our markets, across all subsectors, you know,
01:56it's important to understand tech when we do investment in a holistic way.
02:01I mean, manager selection, risking stating the obvious, is obviously very key here to performance, right?
02:07And I wonder, since the Chinese markets emerged from a bear market, I would imagine more fund houses have set up sub.
02:14How has that dynamic affected your job effectively?
02:18What are the trends to watch there?
02:21Well, we are very glad China has come back.
02:24As we saw, like, last year, China rally.
02:27It's important to notice that it rallied without the recovery of the property market.
02:34So it's a good structural change.
02:37It has been supported by consumption, you know, domestic, and then manufacturing, exports.
02:43They have very strong exports remaining, you know, continue to have very strong exports, which is very good news.
02:48And we are excited that within the hedge fund landscape, we're seeing more new launches.
02:55A lot of the new China funds are coming back.
02:57Okay.
02:57Which is good.
02:59We've seen, like, names from, like, they could be, like, spin out from, like, pot shops, or they can spin out from existing, you know, big hedge funds.
03:07And what's sort of the most dominant strategy that these new hedge funds are taking?
03:12Yes.
03:12A lot of them have, well, there are two types of funds that we see a lot of new launches from.
03:20One is Asia Pacific, but with a heavy tilt to tech exposures.
03:25Okay.
03:25And another, we continue to see, like, China funds, but they also play heavily in the tech.
03:31Right.
03:31Yeah.
03:32And I'm curious, so a market like Korea, for example, right, if you did not have exposure to Korea, you likely underperformed.
03:39Yeah.
03:39But with the gains that we've seen there more than double, I mean, you could make the argument the next big move could be down, could be down.
03:46So, how do we need to be looking at Korea as part of our strategy this year?
03:50Yes, that's a very good question.
03:52If we look at Korea, the market rally this month, you know, Samsung and, you know, SK Hynix already contributed a lot of it.
03:59You know, if you look at these two names, they already make up, like, 30%, more than 30% of the index.
04:05So, what's next to play?
04:07Well, actually, for Korea, in addition to tech, there's K-Beauty.
04:12Right.
04:13K-Defense.
04:14Because these names are pretty unique and may not be known by foreigners, but there are a lot of research to be done.
04:22But we pick managers who are specialists in this area so they're able to, you know, invest across these different sectors.
04:30Beyond, and just speaking of defense, actually, beyond Asia, what do you think about Europe then?
04:35And are you looking for investments there in the coming 12 months?
04:38Because, I mean, defense was one of the standout sectors for 2025.
04:42Yes, Europe remains to be a very, you know, important market.
04:47A lot of headlines, a lot of noises, and we consider any pullback as a good buying opportunity.
04:52Right.
04:52There's always, you know, pockets of resilience, defense, and energy.
04:59So, and a global defense budget will keep rising.
05:02So, we would consider this a very good opportunity.
05:04You know, it's not just like me.
05:05loud.
05:05That's great.
05:06So, sir, thank you.
05:07Very, very, very, very, very good.
05:10ы came here.
05:15Well, today we're in power and in power and all of you are on a miss.
05:19Okay.
05:20Welcome.
05:26vi
05:26affairlessly.
05:27esimerk
05:29anti mandy.
05:31Sorry.
05:32This is the end of power and all you play.
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