In this Australian Financial Review article, we shared our perspective on the remarkable resurgence of software stocks, following what became known as the "SaaSpocalypse". As a global equities fund, we at Minotaur Capital were consulted as one of Australia's top tech investors, alongside industry peers, to examine whether the sharp recovery in companies like Atlassian and Salesforce can last.
Thomas described the sell-off and subsequent surge in SaaS stocks as "irrationally rational", noting that rapidly moving AI technology makes valuations difficult to extrapolate. He explained that investors' worst fears have so far proven unfounded, with tech jobs remaining and enterprise customers sticking with providers who integrate AI effectively.
"A lot of enterprises are not set up to build things internally."
Reflecting our disciplined approach to portfolio management, Rice hasn't bought back into the software sector in recent months, with our biggest SaaS position being Japanese accounting software stock Freee, which has surged 134 per cent since mid-June. He stops short of calling the bottom, warning that simpler, lower-end software firms still face intense competition and AI disruption.
To read the article, click the link below.