Hantoo Asset Management Hosts ACE Big Tech Meeting
Featuring Speakers Adam Sichel and Kim Deokjin
"Since the 2000s, as internet penetration became widespread, the world has embarked on a path of change toward an era dominated by tech stocks. This is why Korea Investment Trust Management recommends investing in tech companies that lead the changes in the world."
Bae Jae-gyu, CEO of Korea Investment Trust Management, is giving a greeting at the 'ACE Big Tech Meeting' held on the 10th at the FKI Tower Conference Center in Yeouido. Photo by Yoo Hyun-seok
On the 10th, Bae Jaekyu, CEO of Korea Investment Trust Management, stated this at the 'ACE Big Tech Roundtable' held at the FKI Tower Conference Center in Yeouido.
CEO Bae said, "From the year Apple first launched the smartphone until now, Apple's stock price has increased 31 times, the S&P 500 has risen 4.8 times, and the Nasdaq 100 has gone up 10 times," adding, "As long as technology continues to dominate the world, these results will continue."
The first presenter at the 'ACE Big Tech Roundtable,' which began with CEO Bae Jaekyu's opening remarks, was Adam Sishel, author of 'Money Flows to Big Tech' and CEO of Gravity Asset Management. He entered Wall Street in 1995 as an analyst and later founded Gravity Capital, managing assets for high-net-worth individuals and institutions.
Adam Sishel explained, "The world is changing. In the 1990s, only two IT companies ranked in the top 10 by market capitalization, but in the 2020s, eight companies are not only within the top 10 but also occupy the top 1 to 3 positions (as of 2021)."
He added, "Big tech companies enjoy economic moats based on winner-takes-all structures and brand value," emphasizing, "Investing in representative companies that have built economic moats, rather than all tech stocks, is the best way to accumulate wealth."
Regarding concerns that these companies' stock prices might be too high, he said, "Amazon accounts for 40% of U.S. e-commerce and only 15% of total commerce," and predicted, "There is still room for growth, and the companies will grow in line with market expansion rather than peaking."
The second presenter was Kim Deokjin, Director of the IT Communication Research Institute. Kim said, "As the generative artificial intelligence (AI) industry develops, the importance of tech companies is increasing," and added, "In the future, the AI industry will be reorganized mainly around big tech companies that have gained a competitive edge based on capital power beyond imagination."
Korea Investment Trust Management plans to list four types of big tech active ETFs on the Korea Exchange on the 11th: 'ACE Nvidia Value Chain Active,' 'ACE Microsoft Value Chain Active,' and 'ACE Google Value Chain Active,' among others. These ETFs will hold about 25% weight in each representative company, with the remaining approximately 75% invested in selected companies that will grow alongside them.
Kim Seunghyun, ETF Consulting Manager at Korea Investment Trust Management, said, "We are introducing four ACE Big Tech Value Chain Active ETF series that invest in big tech companies dominating the AI industry and value chain companies," adding, "The U.S. stock market is changing centered on big tech companies, and the influence of the top seven big tech companies, collectively called the Magnificent 7, is growing further through technological innovation."
He emphasized, "The reason for focusing on the value chain is that when big tech grows, it explosively grows together," and added, "We plan to respond with an active strategy in the rapidly changing tech industry."
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