One of Australia's best stock pickers pits his skills against AI

The competitors

• In the blue corner, we have ChatGPT-4o. OpenAI released GPT-4o ("o" for "omni") on May 13, 2024, introducing a significant advancement in AI capabilities. GPT-4o is a multimodal AI model, meaning it can process and generate content across multiple formats. 
• In the red corner, we have Emanuel Datt, from Datt Capital. Both the Datt Capital Absolute Return Fund and the Datt Capital Small Companies Fund have enjoyed stellar performance since inception in 2018, consistently ranking in the top 10% in the peer group, legitimising Datt as one of the top stock pickers in the country. 

The Stock picks - Chat GPT

1. Xero Ltd (ASX: XRO)

Xero's recent acquisition of US-based payments platform Melio for US$2.5 billion (A$3.9 billion) aims to significantly enhance its presence in the North American market. By integrating Melio’s payment capabilities with its accounting software, Xero plans to offer a comprehensive financial platform to US small-to-medium businesses. This acquisition is expected to accelerate Xero's US revenue growth and nearly triple its North American revenue from day one.

2. WiseTech Global (ASX: WTC)

WiseTech Global continues to expand its global footprint through strategic acquisitions, such as the recent purchases of openTecnologia SA in Colombia and the larger e2open. The company's flagship platform, CargoWise, is gaining traction among large global freight forwarders, now serving 24 of the top 25. 

3. Technology One Ltd (ASX: TNE)

Technology One is targeting $1 billion in Annual Recurring Revenue (ARR) by FY30, driven by its innovative SaaS+ ERP platform. The company has seen significant growth in the UK market, with UK ARR up 50%, and continues to invest heavily in R&D to enhance its product offerings and expand its market share in government and education sectors. 

4. Nuix Ltd (ASX: NXL)

Nuix is focusing on the rollout of its unified platform, Nuix Neo, which saw Annualised Contract Value (ACV) grow to $18.9 million in the first half of FY25, up 361% from the previous period. The company is targeting approximately 15% ACV growth in constant currency for FY25, with expectations of growth in the range of 11% to 16%. 

5. Gentrack Group Ltd (ASX: GTK)

Gentrack has reported a 34.7% increase in half-year profits for FY25, highlighting strong revenue growth and financial performance. The company is investing in its flagship g2.0 platform and expanding its global customer base, positioning itself for continued growth in the utilities and airport sectors. 

The Stock picks - EMANUEL DATT

1. Bravura Solutions (ASX: BVS) 

BVS provides enterprise software for wealth management, life insurance, and superannuation industries across global markets. 

The company has significantly turned around over the past few years and is well placed to pursue growth.

2. Monash IVF (ASX: MVF)

MVF is the leading provider of assisted reproductive services in Australia, holding the largest market share. 

Despite the recent challenges, the board have acted decisively to protect the value of the business and we anticipate operational improvements over the next 12 months.

3. Pexa Group (ASX: PXA)

PXA operates a digital property settlement platform, facilitating electronic lodgement and settlement of property transactions in Australia and the UK. 

We anticipate improved economics as the company has reduced development costs going forward.

4. Siteminders (ASX: SDR)

SDR operates a global SAAS platform that enables accommodation providers to manage room distribution, bookings, and payments across multiple channels. 

The company holds significant pricing power and we expect to see positive economic tailwinds over the next year.

5. WA1 Resources (ASX: WA1)

WA1 is an Australian mineral development company focused on the commercialisation of the world-class Luni niobium discovery in Western Australia. 

We anticipate increased interest in the company as it progresses critical path items towards the project's commercialisation over the coming 12 months.

See you in six months

There you have it, everyone; the picks are in. We will revisit the selections in six months and give the competitors the opportunity to remove one stock and add another. We will then see who the winner is, a further six months down the road - on July 1 2026. 

Who do you think the winner will be, and what are your thoughts about abdicating investment responsibility to AI?

Whilst this is a fun thought experiment, that is a question that you will likely need to answer at some point in your investing journey, especially those in the younger cohort. Share your thoughts in the comments section below.