Weekend Edition : Minotaur’s Funds Management by AI

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NAB Morning Call 33 min 1 speaker 8 chapters transcribed 20 days ago
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What is Minotaur Capital and how does it run a global equity fund with just two people?

Phil Dobbie 0:01
A wealth fund run by just two people. The analysts have all been replaced by AI. Is this the way of the future where technology enables faster and broader assessment of market opportunities wherever in the world that might be? Is this the way all funds will operate? We look at that this week. The morning call from NAB with Phil Dobby. The weekend edition. So Armina Rosenberg is a co-founder of Minotaur Capital alongside Thomas Rice. She's worked at JP Morgan for many years. She spent five years with Atlassian, the Aussie Tech success story. Mike Cannon Brooks and Scott Farquhar, two college friends at the University of New South Wales, set up something which was very big in the tech space. So I wonder how working for fast-growing software business influenced.
Phil Dobbie 0:47
Influenced Armina's approach to fund management because AI has a bit to do with Atlassian these days and also has a lot to do with what she's doing. And is it working? Well, if they were managing one million dollars of your money at the start of twenty twenty four, that would be worth about one point four three million by the end of last year. So Armina well first of all, everyone calls you arms, don't they? So uh we know each other well enough, don't we? Yeah.
Armina Rosenberg 1:14
That's right.
Phil Dobbie 1:15
So uh last year, was that just a good year? I mean, we it was a year of lots of volatility, more chance to show strong growth perhaps. Uh or i is this it now? Do you think this is the level of growth that using AI you can you can achieve year after year?
Armina Rosenberg 1:29
Yeah, it's a good question. Uh look, I think, you know, we obviously aim to deliver investors um the best and highest possible returns. Um, but I think what's interesting about us is and we're very proud of sort of our return metrics, but we also do that with lower drawdowns in the market. So we obviously had the huge sell off in April with uh the Liberation Day announcement. Um we had a shallower drawdown. The market was down, I think, about six point one percent. We were down only five point seven percent. And and you know, that doesn't sound like a a hugely um a huge difference, I guess, but it makes the difference, um, all the difference in the world to investors. Um and then there are a couple of examples of months where the market's been down and we've been up or we've been down less.
Armina Rosenberg 2:12
So we do have this um, I guess, huge regard for for real. And volatility as well. And the way we mitigate that most is by diversification. And so I would say that our portfolio is really, really different to any other global equities portfolio out there, in that you know, we have really different stocks next to each other. So we have things like you know, a German defense company, next to a Polish game developer, next to a Japanese VTuber talent agency, next to an Aussie healthcare tech company. So I think our the makeup of our portfolio is very different. And part of that is because we do use AI to help us with idea generation and triaging those ideas. But I think it's also just Thomas and I, you know, have always kind of looked at the world and the the world of investment quite differently.
Armina Rosenberg 2:59
We're looking for, I think, you know, we don't classify ourselves as a a growth fund or a value fund. we we say that we're a mispricing fund. So we're just looking for mispricing opportunities. Um and we're doing that by uh looking f with with AI, you know, to I think when we started Groc, Oh sorry, when we started uh Minotaur Capital, Thomas and I recognized that the world doesn't need another fund manager. So we had to do something differentiated. And we started with that blank sheet question, like if you could redesign funds management today, knowing what we know about AI and technology, how would you build it? And the answer for us was Minotaur Capital.
Phil Dobbie 3:36
So when you talk about uh having a more diverse range, does that mean you are just looking at different places?

How did Armina Rosenberg’s experience at JP Morgan and Atlassian shape the AI‑driven investment approach?

Phil Dobbie 3:42
Uh or does it mean you ha you're holding more uh stocks, small smaller pounds amounts of a a diverse range? And it is just equities we're talking about, isn't it?

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