TMT has a well-developed market structures supportive of new company creation. Large-scale technological innovations (i.e. AI/ML, cloud, and edge computing, EVs, FinTech, IoT, etc. ) will continue to disrupt business models across all sectors. Rapid adoption of these tech-enabled breakthroughs will define future business successes, creating a strong, self-perpetuating secular tailwind and provide ample opportunities to capitalize on the accelerating pace of innovation.
sECTOR SPECIALTIES
NicTech
why invest in TMT
our edge
Why NicTech
Focus: Target innovative companies and emerging technologies within the TMT ecosystem that we believe are at inflection points
Insights: Apply an operator’s framework to evaluate business models, go-to-market strategies, and valuation of prospective portfolio companies
Discipline: Specialize and conduct extensive fundamental research to gain conviction in our investments
Alignment: Invest alongside clients and constrain capacity to maintain flexibility to invest in smaller cap, emerging technology
Experience: Domain expertise in software/semiconductor design and deep industry network distinctly qualifies us to assess opportunities and risks
Insights: Apply an operator’s framework to evaluate business models, go-to-market strategies, and valuation of prospective portfolio companies
Discipline: Specialize and conduct extensive fundamental research to gain conviction in our investments
Alignment: Invest alongside clients and constrain capacity to maintain flexibility to invest in smaller cap, emerging technology
Experience: Domain expertise in software/semiconductor design and deep industry network distinctly qualifies us to assess opportunities and risks
inception date
February 1, 2020
NICHOLAS INVESTMENT PARTNERS
Investment Approach
NicTech is a directional, sector-focused strategy which seeks to capitalize on breakthroughs in software and silicon. With an emphasis on small-mid cap high growth companies, the strategy seeks to generate superior risk-adjusted returns by investing in these disruptive, tech-enabled businesses. Our research-first approach is informed by extensive industry operating experience and anchored by a fundamental understanding of the technological underpinnings of these segments.
The portfolio is typically comprised of 30 to 50 technology-related securities, diversified across TMT sub-sectors, utilizing both long and short positions, and hedges downside market risk through hedging strategies.
Driver of Expected Return
Bottom up, research-driven stock selection. Industry weights and factor exposures are a residual of the stock-selection process.
