A key change across the Antipodes Partners’ Funds over the quarter has been a broadening of the technology cluster to take advantage of observed valuation dispersion. Similar to the technology bubble and subsequent “tech wreck” at the turn of the century, the market’s focus has narrowed around higher growth “winners” whilst broadly dispensing with “structural” losers. To the contrary, Antipodes Partners believes some of these so-called losers make for great longer-term winners without the price tag. In addition to incumbents such as Microsoft, Samsung Electronics and Cisco, exposures include: leading enterprise storage business NetApp and fast growing search, e-commerce and social networking platforms such as Baidu, JD.com, Naver and LINE that are priced well below their western peers. The tech shorts are targeting the over-hyped “disruptors” whose business models are likely to be questioned by the market when the tide recedes. You can read about the changes in full by clicking below: (VIEW LINK)
Jacob Mitchell found Antipodes Partners in 2015, aiming to take advantage of the market’s tendency for irrational extrapolation, identify investments that offer a high margin of safety and build portfolios with a capital preservation focus.