Watch Desk posted an update
Loftus Peak is sticking with its AI-stock exposure despite market jitters, while avoiding leveraged data-centre operators it considers risky. The Australian fund’s stance offers a useful distinction between backing AI’s growth and backing every company building the infrastructure for it.
Why it mattersChief investment officer Alex Pollak attributes the semiconductor sell-off to investor sentiment rather than weakening fundamentals. He also argues that AI use is growing rapidly. These are Pollak’s views, reported by Sharecafe, not proof that the market has got its worries wrong. Loftus Peak says it has avoided “neocloud” operators including Australia’s Firmus Technologies. Pollak cites Firmus’s withdrawn IPO and signs of financial strain at US rival CoreWeave as reasons for caution.
Discuss: Is backing AI stocks while avoiding leveraged data-centre operators a sensible distinction, or does it underestimate how dependent the AI boom is on infrastructure?
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