Investment managers gathered at a major Hong Kong conference this week to share their top stock picks for 2024, with artificial intelligence infrastructure and Generation Z consumer trends taking center stage.
At the annual Sohn Investment Conference in Hong Kong, hedge fund leaders outlined their strategies for capitalizing on the technology surge and evolving spending patterns among younger consumers. The event serves as a platform where investment firms present their most promising investment opportunities.
The conference comes as semiconductor stocks have driven strong performance in Asian markets this year, outpacing their Western counterparts amid continued AI enthusiasm.
Kenny Zhang, who serves as chief investment officer at Valliance Asset Management, highlighted U.S. AI data center company CoreWeave as a key opportunity. The company supplies technology firms with computing hardware and cloud services using advanced chips from leading manufacturers.
Zhang predicted a fundamental shift in how businesses operate, suggesting that artificial intelligence will enable companies worldwide to outsource intellectual work to digital assistants. “If we think chips are replacing people, how do we make the digital people happy? … You need a company like Coreweave,” Zhang explained during his presentation.
His Hong Kong-based firm projects CoreWeave’s annual revenue could surge to $55 billion by 2028, a massive jump from $1 billion recorded in early 2024.
Other investment managers are focusing on supply chain bottlenecks created by the AI boom. CloudAlpha Capital, another Hong Kong-based hedge fund, identified printed circuit boards as facing the most acute shortages across semiconductor supply chains.
The firm favors Taiwan’s Compeq Manufacturing, a leading circuit board producer. Chris Wang, founding partner and co-chief investment officer at CloudAlpha, warned that even major chip manufacturer operations could face circuit board capacity constraints over the next one to three years.
Wang sees potential for Compeq’s stock to be revalued higher, noting the company supplies major technology brands and is expanding production while trading at less than 15 times valuation.
Keyrock Capital Management is backing Japan’s Kandenko, an electrical engineering company, expecting it to benefit significantly from construction activity related to new AI data center development.
Beyond technology investments, several funds are targeting shifts in consumer behavior, particularly among younger demographics.
Jun Y. Oh from Washington-based Griet Capital endorsed Thai pet food manufacturer i-Tail Corp, pointing to fundamental changes in how people view their animals. “The way people think about pets is very different from our parents,” Oh observed.
He cited striking statistics from South Korea, where pet stroller sales exceeded baby stroller sales last year. Oh noted that Generation Z consumers spend over $6,000 annually on their pets, roughly 2.5 times more than baby boomers.
Hong Kong’s Kaleido Capital Partners is similarly focused on youth-oriented food products. The firm sees continued growth potential for South Korean instant noodle producer Samyang Foods, driven by expanding international sales in Europe and the United States, along with improving profit margins.
The investment firms did not reveal whether they currently hold positions in the companies they recommended during the conference presentations.
