"We target stocks displaying attractive potential for intrinsic growth, regardless of the market environment”
Since he was re-elected, Donald Trump has blown hot and cold on capital markets with his multiple announcements. Volatility and poor visibility did not spare high potential investment thematics, including artificial intelligence. An opportunity for Jacques-Aurélien Marcireau, Manager of Edmond de Rothschild Fund Big Data, to highlight the importance of caution and discipline when investing in technology stocks.
Stock markets began the year on a chaotic note which also affected technology, despite the powerful tailwinds supporting these stocks.
Donald Trump’s initial announcement on the immediate enforcement of very high tariffs applicable to all countries generated a shock comparable to the pandemic crisis, in the sense that it was brutal and left no time for anyone to adapt.
In such market environments, two approaches are possible. The first is to be ultra-responsive and adjust in real time. The second, which is our approach, is to step back from immediate events and continue to steer the course while focusing on tangible items.
The portfolio is therefore built around stocks displaying a potential for intrinsic growth we consider to be attractive, regardless of the outcome of trade negotiations or the Fed’s monetary policy, as we have no intention to bet on these factors.
Which stocks are these?
We made a few adjustments within the fund in the immediate aftermath of Donald Trump’s election, as we felt the many promises he had made were at cross-purposes. In this respect, we believed some aspects could go wrong.
Consequently, we preferred to lower our exposure to companies offering products potentially affected by tariffs. Today, the portfolio is clearly biased in favour of services, which are not exposed to the threat of tariffs and generate recurring income via user subscriptions, meaning they are rather immune to the business cycle.
We took advantage of the panic that swept across the market – which indiscriminately hit stocks that were not impacted by the trade war - to strengthen our positions in vertical specific software (addressing regulatory requirements, or the needs of insurance and healthcare players). We believe these companies are a vital link supporting the effective implementation of artificial intelligence solutions.
Where are investment opportunities geographically?
Our European overweight reflects our convictions in the field, as we have identified very attractive companies across the Old Continent. Furthermore, the valuation gap with the US – which has begun to narrow – remains in favour of European tech companies. We take a particular interest in companies exposed to European digital sovereignty (cloud, cybersecurity, etc…) in the hope that heightened political awareness on this issue will mirror the response on defence and prove durable over time.
We also target data users, meaning traditional players that are embracing artificial intelligence and deploying a tech strategy that will support the transformation of their business or model.
How are these convictions contributing to the fund’s performance?
The fund held up well during the sell-off at the start of the year. On the other hand, it did not benefit fully from the tech index rally recorded during the market rebound. These asymmetrical performances are expected and the product of our conservative and balanced approach.
The fund, which will be 10-years’ old in August, has 2.4 billion euros under management and posts a net annualised performance of 12.30% since its inception in August 2015. We believe the strategy continues to offer potential upside for value creation on account of the strength of the data thematic and the intrinsic potential of our investee companies.
Jacques-Aurélien Marcireau, Lead Portfolio Manager – EdR Fund Big Data, Edmond de Rothschild Asset Management (France)
DISCLAIMER
Edmond de Rothschild Fund Big Data is a sub-fund of the Luxembourg SICAV authorised by the CSSF and authorised for marketing in France, Austria, Switzerland, Germany, Spain, France, United Kingdom, Italy, Luxembourg and Portugal.
Main investment risks
Risk indicator: Unit A and I of this UCI are rated in category 4. The risk indicator rates this fund on a scale of 1 to 7. This indicator is used to assess the level of risk of this product in comparison to other funds and a category 1 rating does not mean that the investment is risk free. In addition, it indicates the likelihood that this product will incur losses in the event of market movements or our inability to pay you. This indicator assumes that you hold the product until the end of the recommended holding period of this fund. The actual risk may be very different if you choose to exit before the end of the recommended holding period of this Fund. The risks described below are not exhaustive. Discretionary management risk: The discretionary management style is based on expectations of the performance of different markets (equities, bonds). However, there is a risk that the solutions may not be invested in the best-performing values at all times. Risk of capital loss: The UCITS does not guarantee or protect the capital invested; investors may therefore not get back the full amount of their initial capital invested even if they hold their units for the recommended investment period. Risk from investing in small and mid cap companies: Investment in small and medium enterprise may entail greater risk than that generally deriving from investments in larger and better established enterprises. Sub-Funds which invest in smaller companies may fluctuate in value more than other Sub-Funds because of the greater potential volatility of Share prices of smaller companies. Equity risk: The value of a stock may change depending on factors specific to the issuer but also on exogenous, political or economic factors. The SICAV may be exposed to the equity markets either via direct investments in equities and/or via financial contracts and/or UCITS. Fluctuations of the equity markets may lead to substantial variations in the net assets which may have a negative impact on the performance of the SICAV.
June 2025. Non-contractual document designed for information purposes only. Reproduction or use of its contents is strictly prohibited without the permission of the Edmond de Rothschild Group. The information contained in this document does not constitute an offer or solicitation to trade in any jurisdiction in which such offer or solicitation is unlawful or in which the person making such offer or solicitation is not qualified to act. This document does not constitute and should not be construed as investment, tax or legal advice, nor as a recommendation to buy, sell or continue to hold any investment. The Edmond de Rothschild Group shall not be held liable for any investment or divestment decision taken on the basis of the information contained in this document. The funds presented may not be registered and/or authorized for sale in your country of residence. If you have any doubts about your ability to subscribe to this fund, please contact your professional advisor. The figures, comments, forward looking statements and other information contained in this presentation reflect the Edmond de Rothschild Group’s view of the markets, their development and their regulations, taking into account its expertise, the economic context and the information available to date. They may no longer be relevant on the day the investor reads them. Consequently, the Edmond de Rothschild Group shall not be held responsible for the quality or accuracy of economic information and data obtained from third parties. Any investment involves specific risks. Investors are therefore advised to ensure that any investment is suitable for their personal circumstances by seeking independent advice where appropriate. In addition, investors should read the Key Information Documents (KID) and/or any other document required by local regulations, which is provided prior to any subscription and is available in French and in English on the website www.edmond-de-rothschild.com under the “Fund Center” tab or free of charge on request. The management company may decide to cease marketing this Fund in accordance with Article 93a of Directive 2009/65/EC and Article 32a of Directive 2011/61/EU. For EU investors: This document is issued by Edmond de Rothschild Asset Management (France); 47, rue du Faubourg Saint-Honoré; 75401 Paris Cedex 08; Public limited company with a Management Board and Supervisory Board and a capital of 11,033,769 euros; AMF approval number GP 04000015, 332.652.536 R.C.S. Paris. A summary of investors’ rights in English and French can be obtained at the following link: www.edmond-de-rothschild.com/media/no2ncu1s/edram-luxembourg-en-investors-rights.pdf. In Spain, the SICAV is registered at the CNMV under number 229. For Swiss Investors: This marketing material is issued by Edmond de Rothschild (Suisse) S.A. located at 18 rue de Hesse, 1204 Geneva, Switzerland, a Swiss bank authorized and regulated by the Swiss Financial Market Supervisory Authority (FINMA).The “Edmond de Rothschild Fund” sub-funds mentioned in this material are sub-funds of the Edmond de Rothschild Fund SICAV, which are organized under the laws of Luxembourg, and have been approved to be offered to non-qualified investors in Switzerland by the FINMA. REPRESENTATIVE AND PAYING AGENT IN SWITZERLAND: Edmond de Rothschild (Suisse) S.A.; rue de Hesse 18 ; 1204 Geneva.
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Public limited company with a Management Board and Supervisory Board and a
capital of 11,033,769 euros - AMF approval number GP 04000015 - 332.652.536 R.C.S. Paris
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