What's the Matter With Big Tech?

TL;DR

Strong concentration on multi-year Compounders in the tech industry, with a focus on small to medium cap stocks.

Transcript

foreign is the era of big cap Tech over hi everyone Welcome to the Real Vision Daily Briefing joining me today is Eric Jackson president and founder of emj capital hi Eric welcome to real vision hey Maggie so this is your first time on the daily briefing if I'm not mistaken so why don't you give us before we jump in why don't you give us a little o... Read More

Key Insights

• 😘 The yield curve inversion, at its lowest level since 1981, signals concerns about a deep recession, but Jackson remains optimistic given the significant damage to tech stocks in 2022.
• ⌛ EMJ Capital focuses on companies that can two or three times their value over a three-year period.
• 💨 Capitalizing on the shift away from China, companies like Bombardier and Shopify present compelling investment opportunities.
• 🔋 Friar, a battery maker, shows promise as an EV play, targeting the supply of batteries to autos and energy storage solutions.
• 🧘 Despite challenges, Farfetch, an online luxury marketplace, has potential for recovery given its dominant position in the market.

Questions & Answers

Q: What is EMJ Capital's area of focus?

EMJ Capital is a long-short fund that focuses on tech stocks with the potential for significant growth over a three-year period.

Q: Why does EMJ Capital prefer small to medium cap tech stocks over big cap tech stocks?

Big cap tech stocks like Apple may already have high market values, making it challenging for them to double or triple in value. EMJ Capital seeks the next set of high-growth companies in the tech industry.

Q: What is Eric Jackson's outlook on US equities?

Eric Jackson believes that financials have been a cause for bearish sentiment in the market. However, he remains optimistic about the tech sector, especially growth-oriented tech stocks.

Q: What role does inflation play in Eric Jackson's analysis of the market?

While there are concerns about inflation, Jackson believes that if inflation starts to decline significantly, it would be bullish for stocks, particularly tech stocks. He expects growth-oriented tech stocks to rebound before the general economic recession ends.

Summary & Key Takeaways

• EMJ Capital, a long-short fund, focuses on tech stocks that have the potential to double or triple their value over a three-year period.

• The portfolio is concentrated and has less turnover, as the fund expects to hold these companies for longer periods.

• Eric Jackson believes that while big cap tech stocks like Apple are strong, there is more potential for growth in smaller to medium cap tech companies.