Important Notice

The 1OAKFunds website is designed solely for Professional and Eligible Counterparties as defined by the Financial Conduct Authority and their professional advisers. To view the content you confirm that you have read and accept our Disclaimer. If you are not a Professional Client, Eligible Counterparty or professional adviser you should not proceed any further. In particular, the content of this website is for Professional Clients and Eligible Counterparties only and should not be relied upon by, or circulated, to Retail Investors.

Issued by 1OAK Capital Limited, authorised and regulated by the Financial Conduct Authority. 1OAK Capital Ltd (1OAK) (Registered in England & Wales Number: 06890293; FCA registration number 501453) provides fund management services for its customers. 1OAK Capital Limited is authorised and regulated by the Financial Conduct Authority. Registered Office of 50 Sloane Avenue London SW3 3DD.

Background

The White Fleet - 1OAK RAIA fund registered a gain of 14.3% for the month to the end of January and 45.5% for the three months up to the end of January to be the best performing Technology fund in the Citywire league table over both periods.

The recent performance of the 1OAK RAIA fund means that it now tops the performance tables for the last few months.

1OAK RAIA is a new and still small fund that invests in Robotics, Artificial Intelligence and Automation stocks. The fund is managed on a high conviction, low turnover basis, selecting shares that the manager believes will be best placed to benefit from global mega-trends.

Yun Sun, the fund manager, says, “I am thrilled to see the fund performing so well. The fund has been well-positioned to benefit from some of the best performing shares in the tech sector. The fund has a small number of holdings and so benefits from our stock selection process. We have a long-term perspective, and select shares that we think will benefit from several global mega-trends.”

The philosophy and process

RAIA is investing in companies that will be integral to how the world will work in the years and decades to come. The stock selection is based on identifying the macro mega-trends evolving at an ever-faster pace. At a scale, few fully appreciate and pick the companies that will benefit most of these trends that are unequivocally beneficial for humanity; others suggest a more dystopian future.

  • China and the USA are very different and are drifting
  • Robotics, Artificial Intelligence and Automation will become omnipresent
  • New technologies will devolve functionality, choice, and capability to individuals
  • Tech is creating a new aristocracy
  • The new land-grab is in

China and the us diverge

China and the US are very different. Deep-seated cultural differences will manifest themselves in the way that technology is deployed and what is accepted.

The increasing divergence of the US and China will present opportunities and threats. Differences in views on property rights and the balance between the national benefit and individual liberty will create an increasingly bi-polar global economy.

The divergence of the two global superpowers will have significant geopolitical consequences. Neither is likely to tolerate undue dependence on the other. It would be unwise to suppose that they would resist using sovereign authority to seize control of assets “in self-defence”.

These cultural differences will mean that there are different solutions to similar problems. For example, the approach to self-driving vehicles or generating additional computing power will reflect different attitudes.

Omnipresent of new technology

As technology develops, sci-fi is morphing into reality. Technology will become more and more integrated into the economy and society. There will be fundamental and material changes in the role and function of people that will eclipse the changes brought about by the industrial revolution. The makers of the pick-axe handles will as ever be the winners from the gold-rush.

Devolution

At a local level, tech development will empower individuals through the devolution of more functionality and access to more information. This may be particularly important for markets; retail investors are likely to become an increasingly important influence on markets as the increased ability to buy and sell securities broadens and deepens the base of active investors.

A new tech aristocracy

At a macro level, the concentration of power in a small number of firms and individuals has already created a new aristocracy. The latest Lords of the tech age are having to create their own moral and ethical code on the fly. To date, their narrow self-interest has proved more powerful than any more benign concern for the common good, but this is only serving to increase their influence. Some like Elon Musk, Richard Branson and Masayoshi Son have developed an almost religious following from their cult. Imagination and influence have become the attributes required to get to the top.

Space

Finally, the land-grab in space (if that is not an oxymoron) will be as profitable as earlier terrestrial versions. Space is the new real estate, and a comprehensive network of satellites ensures domination.

Download PDF version