In a strategic move to tap into the ever-evolving landscape of innovative industries, Samsung Active Asset Management has launched the KoAct U.S. Nasdaq Growth Corporations Active fund. This actively managed investment vehicle aims to outperform the Nasdaq index by allocating a higher-than-market capitalization weight to leading growth stocks.
A Bold Approach to Nasdaq Investing
Unlike passive investment strategies that simply mirror the Nasdaq index, KoAct U.S. Nasdaq Growth Corporations Active seeks to generate excess returns by emphasizing stocks at the forefront of AI, technology, finance, and consumer trends. The fund’s strategy hinges on investing in companies poised to lead their respective sectors, leveraging Samsung Active Asset Management’s in-depth corporate research to select high-potential stocks.
Heavyweight Allocations to High-Growth Stocks
A key distinguishing factor of this fund is its concentrated investments in selected stocks. Notably, Palantir (PLTR) and Broadcom (AVGO) each receive a 15% allocation, significantly higher than their respective weights of 0.8% and 3.35% in the Nasdaq index.
However, this strategy comes with its share of risks. Palantir’s stock price recently faced a sharp decline, plummeting over 10% overnight due to concerns over potential U.S. defense budget cuts, as it is regarded as a key AI-driven defense stock. Similarly, Broadcom saw investor sell-offs following reports that Microsoft terminated lease agreements for two data centers, sparking fears of a slowdown in AI infrastructure spending.
Diverse Portfolio Offers a Potential Rebound
Despite short-term volatility, the KoAct fund’s diversified approach provides a potential hedge against losses. The fund also holds a 15% stake in Alphabet (GOOGL), Google’s parent company, which remains a dominant force in AI and cloud computing.
Beyond tech giants, the fund incorporates investments in emerging and consumer-centric growth companies, including:
- Natera (NTRA): A leader in genetic-based cancer diagnostics
- Upstart Holdings (UPST): AI-powered loan assessment solutions
- Zillow (Z): AI-driven real estate brokerage platform
- Dutch Bros (BROS): A fast-growing coffee brand popular among millennials
- Tapestry (TPR): A fashion powerhouse resonating with younger consumers
Active Management to Seize Market Trends
Yang Hee-chang, fund manager at Samsung Active Asset Management, emphasized the importance of active stock selection, stating, “The goal is to integrate the fast-changing trends of emerging growth industries into the portfolio for investors who feel disappointed with passive investment in Nasdaq index ETFs.”
By leveraging Samsung’s corporate research expertise and active portfolio management, the fund aims to capitalize on shifting market trends and navigate economic uncertainties to deliver superior performance over time.
With the AI revolution, changing consumer habits, and technological advancements driving the next wave of growth, KoAct U.S. Nasdaq Growth Corporations Active is positioning itself as a dynamic alternative to traditional Nasdaq-tracking funds.
