Aperture Small Cap Innovation - Q1 2024 Manager Commentary
In Short
Aperture Small Cap Innovation Fund: Commentary for Q1 2024
Quarter in review
We explore the dynamic interplay between Europe's proactive monetary policies and the exploding demand for computational power, setting the stage for what we believe to be a uniquely attractive investment landscape. With the Swiss National Bank leading a hopeful march towards a soft landing, and visionaries like Sam Altman forecasting an unprecedented need for compute across sectors, we're at the brink of a technological leap where European innovation stands at the forefront.
This era of transformation, highlighted by significant investments in AI and infrastructure, including in the small cap domain, underscores a pivotal moment for investors. As we navigate through these shifts, our strategy is clear: leverage Europe's burgeoning role in global technological advancement to capture growth, driven by a blend of strategic foresight and market insight.
Despite small caps not sustaining their robust performance from the end of 2023 and once again falling behind large caps in Q1, our conviction stands firm: the conditions for a sustained rally are progressively aligning. The uptick in M&A activity we're witnessing in our view serves as a compelling indicator of this momentum.
