Armina recently appeared on Ausbiz to talk through where she sees AI economics actually accruing and how Minotaur uses AI internally to navigate increasingly volatile markets.
Memory is one of Armina's highest-conviction positions, with around 11% of the fund allocated across SK Hynix and Micron. Although memory has historically been viewed as a commodity play, Armina argues the high-bandwidth memory market is now effectively an oligopoly between SK Hynix, Samsung Electronics and Micron. As she explained:
Historically these names have been viewed as a commodity play, because HBM is essentially the same product, but because it's an oligopoly they have real structural demand coming through, real pricing power, and they're going to see recurring revenues.
The names still trade on undemanding multiples — SK Hynix is on around four times earnings — although the ride has been bumpy, with memory awful in March before SK Hynix rallied 61% in April.
On the research side, Armina discussed how Minotaur uses its proprietary AI platform Taurient to navigate this complexity. Rather than asking for a single forecast on events like the Iran conflict, the team asks Taurient to lay out five scenarios and then probabilistically weight them. As Armina put it:
It's still very Minotaur — AI and portfolio manager working in tandem, AI doing all the heavy lifting on research and then portfolio management judgement coming in by the humans.
To watch the interview, click the link below.