Investment management firm Sturgeon Ventures and adviser RoboCap have launched a ‘pure play’ robotics fund to benefit from the industrial revolution in automation technology.
The RoboCap Ucits fund will target fast-developing companies that are emerging in the robotics sector, from 3D printer manufacturers to high precision surgical robot makers.
The fund will target double-digit annual returns by investing in listed companies mainly in the US, Japan and Western Europe. It will also focus on 22-30 long positions with an average holding period of approximately 12 months.
The emphasis will be on pure play investments but companies benefiting from the theme will also be considered.
Commenting on the launch, RoboCap’s managing partner and manager of the RoboCap fund, Jonathan Cohen, said: ‘Robotics and automation are creating disruptive changes in every single industry. But we are now at an inflection point because the cost and performance of robots and the average wages in manufacturing are now converging.’
‘The technology is improving daily so now is the time to invest yet there are few vehicles that enable investors to benefit from the sector. But as interest grows, there will be a need for specialist advisers giving access to future industry leaders.’
According to the companies, robotics and automation stocks have performed three to six times better than general equity indices with over 17% internal rate of return over the last 10 years.
Seonaid Mackenzie, managing partner at Sturgeon, added: 'Many investors are vexed as to where they can achieve returns in markets that seem to be overstretched around the world. But alpha is potentially achievable if investors focus on the right themes. We have certainly seen investors increasingly adopt a thematic approach in their search for alpha.'
The fund, which is RoboCap’s first product, is being launched as a Ucits sub-fund of the ML Capital platform overseen by Sturgeon Ventures. Sturgeon will be the portfolio manager, while RoboCap will act as the adviser.
At the end of September, Pictet Asset Management announced it was about to launch a new fund to invest in robotics and artificial intelligence technologies.