A fintech lets artificial intelligence make the decisions for reallocations in its funds. The AI robot trader relies on these stocks.
• Fund relies on Tesla shares
• More Trump trades in the portfolio
• Strong performance this year
Qraft Technologies, a SoftBank-backed South Korean fintech company, rebalances its portfolio on the second trading day of each month, Barron’s reports. Fintech lets artificial intelligence make the decisions.
Fund relies on Tesla shares
In October, before Tesla’s disappointing robotaxi event, Qraft Technologies had increased its stake in the automaker, according to Barron’s. What initially seemed like a bad move subsequently brought the fintech significant profits. Now the asset manager has once again reached out to the Musk Group. Its largest ETF, the momentum fund AMOM, increased Tesla’s share of assets under management from 6.55 percent to 7.95 percent in December, Barron’s reports.
AMOM follows a momentum factor investment strategy, meaning it targets stocks that have shown strong performance with the assumption that they will continue to grow. This fits Tesla shares, which have already risen sharply this year and recently even reached a new all-time high. The stock really gained momentum, especially after the US elections, due to the proximity of the Tesla boss Elon Musk to US President-elect Donald Trump. Investors are hoping for Tesla-friendly policies from the Republican.
More Trump trades
In addition to Tesla, Qraft Technologies’ AMOM also appears to have adjusted its position in other stocks in light of a second Trump term. The momentum fund relied on so-called “Trump trades” such as financial stocks, energy and utilities. In December, AMOM made purchases from, among others, the hedge fund Blackstone, the investment company KKR, the oil company Texas Pacific Land and the electricity supplier Vistra. The largest share increase was recorded in Meta Platforms in December, while Apple’s shareholding was reduced the most.
QRFT relies, among other things, on tech stocks and pharmaceutical stocks
Another Qraft Technologies fund, QRFT, takes a more defensive, multifactor approach, according to Barron’s. In contrast to AMOM, where NVIDIA has the second largest position in the portfolio with around 9 percent, QRFT does not own any shares in the chip giant. His largest holdings are Apple, Meta and Alphabet. However, there are also investments outside the technology sector, such as Eli Lilly, Johnson & Johnson and AbbVie, companies from the healthcare and pharmaceutical sectors.
Strong performance
This year, the funds’ AI stock selection is impressive. At the end of November, AMOM had achieved a year-to-date return of 38 percent, while QRFT had a return of 26 percent at the end of November. For comparison: the market-wide US index S&P 500 increased by around 26.5 percent from the beginning of the year to the end of November.
It remains to be seen whether the funds can continue their performance in the coming year.
Editorial team finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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