8 mega-cap stocks have carried markets in 2023. Here’s what comes next

Few of us would’ve predicted that by June, the S&P would not only be positive, but up more than 11%. At face value, a healthy market.

But dig a little deeper, and it quickly becomes apparent that this performance has been carried by the big mega-cap tech stocks. Such is their performance, and the lack of performance by the rest of the index, that Apple, Microsoft, Alphabet and Nvidia now account for a third of the S&P500.

This all begs the question: what next?

Do these mega-cap stocks sell-off? Does the rest of the market trade up? Or will it be a bit of both?

These questions, and more, are answered by today’s guest – Jacob Mitchell, founder, CIO and lead Portfolio Manager at Antipodes Partners. Antipodes houses two global funds, an emerging markets fund, and an actively traded global shares ETF (ASX: AGX1). 

Before starting Antipodes, Jacob spent 14 years at Platinum Asset Management, where, as the co-CIO and lead portfolio manager of the Platinum International Fund, he oversaw $3.5 billion in assets under management.

Jacob goes to town on a lot of subjects, including:

• his bear case for consumer-facing mega-cap tech;
• whether the AI boom is in fact a bubble;
• where he’s seeing low multiples despite strong earnings growth; and
• the stocks that will lead the next cycle.

Note: This episode was recorded on Wednesday, 5 June 2023

Timestamps

• 2:30 - Megacaps have dominated. What's next?
• 5:30 - Is AI a bubble?
• 9:10 - Slowing in the West, reopening in the East
• 12:00 - Market valuations and fundamentals don't line up
• 15:30 - Eyes on smaller companies bridging the gap
• 20:10 - Primed sectors
• 22:50 - Holding the line
• 27:20 - Liquidity is draining
• 30:20 - The secular winners of tomorrow
• 34:45 - Retail investors are sceptical of the energy transition
• 41:00 - Investment case for fossil fuels
• 44:00 - Hedging risk in today's market
• 48:00 - High conviction stocks

Managed Fund

Antipodes Global Fund

Global Shares

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ETF

Antipodes Global Shares (Quoted Managed Fund)

Global Shares

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