Equities, our investment approach.

As summer draws to a close, markets have taken a completely different turn. Following a volatile first quarter, the period that followed the publication of Q2 earnings results has reaffirmed the merits of our positioning: maintaining a contrarian exposure to software and healthcare stocks has proven to be both a powerful and a diversifying source of returns. 

On the software front, which is our largest overweight, fears of AI disruption were tempered by a very good earnings season, as software companies are quickly adapting their offering to integrate AI agents.

Faced with increasingly concentrated equity markets – which are sometimes subject to excessive valuations, sudden shifts in market conditions and growing macroeconomic complexity – Edmond de Rothschild Asset Management is deploying a new, cutting-edge expertise. Combining algorithmic rigour, artificial intelligence and human oversight, this range of solutions offers active and systematic management that seeks superior risk control compared to passive solutions.

—    The three new funds are Core US, Core EMU and Defensive Global Equities strategies
—    They are the first products in a range named Quartz, which will initially comprise seven funds by the end of 2026
—    The quantitative management team is being strengthened by the arrival of Yu Sun and Juan Sebastian Caicedo, both quantitative analysts and portfolio managers.

The rise of agent-based artificial intelligence (AI) is opening a new chapter in the technology cycle. By enabling AI ‘agents’ to perform sequential tasks, connect to third-party systems and manage real-world processes, this wave is driving explosive data growth and redefining infrastructure requirements, to the benefit of certain key players, from edge cloud to industrial robotics.

At the same time, the anticipated arrival of mega-IPOs such as SpaceX, Anthropic and OpenAI is reviving memories of the dot-com bubble and raising questions about fair valuation in a market dominated by capital flows. In this context, how can we distinguish the long-term winners from mere market noise? Xiadong Bao, Senior Portfolio Manager of the EdR Fund Big Data, provides the answer.