A professional investor tells us where hed put his money. This week: Peter Lingen of the Pictet Robotics fund highlights some promising investments.
The modern robotics market began in the car sector in the 1960s. Since then it has expanded relentlessly into ever more industries, fuelled by technical innovations such as exponential growth in computer processing power, electronic miniaturisation, increasingly refined sensors and controllers, new materials and more compact batteries. And robotics will remain a growth industry thanks to several secular trends, including cloud computing, autonomous driving, electric vehicles and precision medicine.
We invest in companies that benefit from the growth of robotics, automation and artificial intelligence. But this is a substantial investment arena, which makes fundamental research key.
We track 400 companies globally. Insights we gain from firms, meetings with brokers and trade shows each year help us narrow the field to a concentrated portfolio of between 40 and 60 stocks.
On average, the companies generate 75% of their revenue from activities that fall within our investment criteria. They belong to highly diverse sectors: vehicle components, life-sciences, med-tech, consumer robotics, semiconductors, industrial robotics, internet infrastructure and application software.
We look for companies that are market leaders in emerging niches, with clear technology leadership. We like groups that invest heavily in innovation and have the confidence to invest in themselves. While some of these are highly valued, we believe that others are hiding in plain sight. For example, Google (Alphabet) (Nasdaq: GOOGL) is a business with $155bn in sales that is growing at around 20% a year. Yet it is barely monetising some of its most valuable assets, such as Google Maps and Waymo, its self-driving technology division. Alphabet trades on just 13 times adjusted earnings.
Electronic design company Synopsys (Nasdaq: SNPS) is another good example. It helps chip manufacturers design and build high-performance semi-conductors. As the complexity of systems increases and new companies enter the semiconductor sector, the importance of design tools increases.
In recent years the stockmarket has begun to appreciate the strategic importance of both Synopsys and its main competitor Cadence Design Systems (Nasdaq: CDNS), which we also hold. We believe they continue to be an attractive investment over the medium term.
We recently bought a position in Altair Engineering (Nasdaq: ALTR), a company weve monitored since it floated in 2017. It is a leading producer of simulation software, which is bought by many of the worlds top vehicle and aerospace companies.
We like Altairs business niche and we are confident that its software is increasingly relevant to a wide variety of different markets including energy, life sciences, consumer electronics and high-performance computing.
We believe Altair has good prospects for long-term growth. The success of its competitor Ansys (Nasdaq: ANSS), another of our investments, shows how valuable a successful simulation/3D-design company can be in the stockmarket.
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Five stocks that offer robust returns from the robotics sector - MoneyWeek
- Robotics Academy - December 14th, 2016 [December 14th, 2016]
- KUKA Robotics | KUKA AG - December 14th, 2016 [December 14th, 2016]
- Robotics - The Great Courses - December 22nd, 2016 [December 22nd, 2016]
- Robotics - reddit - January 11th, 2017 [January 11th, 2017]
- Chatham Robotics Goes Undefeated and Moves On to State Championship - TAPinto.net - February 7th, 2017 [February 7th, 2017]
- Meridian robotics team gears up for Idaho FRC Regional - KBOI-TV - February 7th, 2017 [February 7th, 2017]
- Local robotics students headed to World Championship tournament - KOLO - February 7th, 2017 [February 7th, 2017]
- Report: Nearshoring favors robotics, will require heavy capital investment - Supply Chain Dive - February 7th, 2017 [February 7th, 2017]
- Belding hosts largest robotics competition in history of event - Greenville Daily News - February 7th, 2017 [February 7th, 2017]
- First Tech Challenge: High schools battle in robotics competition - The Journal News | LoHud.com - February 7th, 2017 [February 7th, 2017]
- Robotics Team Takes Home Trophy at Lego Competition - Patch.com - February 7th, 2017 [February 7th, 2017]
- OHS robotics club dazzles McKinley students - Southernminn.com - February 7th, 2017 [February 7th, 2017]
- Toyota Industries Acquires Warehouse Robotics Developer - Wall Street Journal - February 7th, 2017 [February 7th, 2017]
- South High wins Volvo's robotics tournament - Herald-Mail Media - February 7th, 2017 [February 7th, 2017]
- Belding hosts robotics competition - Sentinel-Standard - February 7th, 2017 [February 7th, 2017]
- CMS robotics program soars - SW News Media - February 7th, 2017 [February 7th, 2017]
- Update On The Megatrend of Robotics - CTOvision (blog) - February 7th, 2017 [February 7th, 2017]
- 33C3: Edible Soft Robotics - Hackaday - February 7th, 2017 [February 7th, 2017]
- Shopping robots on the march in Ocado - BBC News - February 7th, 2017 [February 7th, 2017]
- Keller students Starstruck on robotics - Fort Worth Star Telegram - February 7th, 2017 [February 7th, 2017]
- Our obsession with robots keeps getting creepier - New York Post - February 7th, 2017 [February 7th, 2017]
- Rethink Robotics makes its workplace bots easier to train and redeploy - TechCrunch - February 7th, 2017 [February 7th, 2017]
- Donation will cover costs for Sequim robotic competition - Peninsula Daily News - February 8th, 2017 [February 8th, 2017]
- Derby Middle School robotics club competes at high school competition - The Derby Informer - February 8th, 2017 [February 8th, 2017]
- Raspberry Pi-powered arm: This kit aims to make robotics simple enough for kids - TechRepublic - February 8th, 2017 [February 8th, 2017]
- WPI Robotics Team Has a Mission with Mars | News | WPI - WPI News - February 8th, 2017 [February 8th, 2017]
- Rehab robotics field promises to return control, mobility to aging population - ScienceBlog.com (blog) - February 8th, 2017 [February 8th, 2017]
- Rethink's Robots Get Massive Software Upgrade, Rodney Brooks So Excited - IEEE Spectrum - February 8th, 2017 [February 8th, 2017]
- Robotics: A robot that flies like a bat : Nature : Nature Research - Nature.com - February 9th, 2017 [February 9th, 2017]
- Robotics teams at CCS stay busy at tournaments - Imperial Republican - February 9th, 2017 [February 9th, 2017]
- Rethink Robotics rethinks its software | ZDNet - ZDNet - February 9th, 2017 [February 9th, 2017]
- Hartland robotics teams take on the FIRST Tech challenge at state competition - LC Sussex Sun - February 9th, 2017 [February 9th, 2017]
- Home-schooled students studying robotics - Valencia County News Bulletin - February 9th, 2017 [February 9th, 2017]
- Agility Robotics Introduces Cassie, a Dynamic and Talented Robot Delivery Ostrich - IEEE Spectrum - February 9th, 2017 [February 9th, 2017]
- Memphis robotics team headed to Super-Regionals - New Baltimore Voice Newspapers - February 10th, 2017 [February 10th, 2017]
- Patriot Robotics Alliance upsets Brentwood Academy Alliances - Clarksville Now - February 10th, 2017 [February 10th, 2017]
- Raptor legs & human hips: Giant leap for walking robots - RT - February 10th, 2017 [February 10th, 2017]
- How drones and robotics may shape the future of conflict under President Trump - PRI - February 10th, 2017 [February 10th, 2017]
- Robotics teams wins at state meet - The Citizen.com - February 10th, 2017 [February 10th, 2017]
- Ford Bets $1B on Startup Founded by Waymo, Uber Vets - ABC News - February 10th, 2017 [February 10th, 2017]
- South Beach robotics squad advances to super regionals - The Daily World - February 11th, 2017 [February 11th, 2017]
- Personal robotics the next technological revolution: Dr Vivian Balakrishnan - Channel NewsAsia - February 11th, 2017 [February 11th, 2017]
- This bipedal robot could deliver your packages one day - The Verge - The Verge - February 11th, 2017 [February 11th, 2017]
- Robotics event offers lesson in teamwork - Lewiston Morning Tribune (subscription) - February 12th, 2017 [February 12th, 2017]
- Essex County Freeholders Honor Livingston Robotics Club Teams - TAPinto.net - February 12th, 2017 [February 12th, 2017]
- College Town: WPI Robotics team aims for $1M NASA prize - Worcester Telegram - February 12th, 2017 [February 12th, 2017]
- Alice Shaw robotics team building invention to save wolves | Local ... - Lompoc Record - February 12th, 2017 [February 12th, 2017]
- Ford invests $1B in robotics startup in driverless car quest - CBS News - February 12th, 2017 [February 12th, 2017]
- Freshman Caldwell team takes first place in Regional Robotics Tournament - Idaho Press-Tribune - February 12th, 2017 [February 12th, 2017]
- What went seriously wrong with Lily Robotics - VentureBeat - February 12th, 2017 [February 12th, 2017]
- Face off: Marion students compete in robotics competition - The Exponent Telegram (press release) (registration) - February 12th, 2017 [February 12th, 2017]
- Robotics Competition slated for Monday - San Angelo Standard Times - February 13th, 2017 [February 13th, 2017]
- Cornerstone Prep robotics team brings home trophy in first year - MDJOnline.com - February 13th, 2017 [February 13th, 2017]
- Center Grove robotics team headed to state competition - Daily Journal - February 13th, 2017 [February 13th, 2017]
- Hundreds piled into a Fort Mill gym. They cheered. They competed. They drove robots. - The Herald - February 13th, 2017 [February 13th, 2017]
- My Turn: Arts education paved the way for girls' robotics win - AZCentral.com - February 13th, 2017 [February 13th, 2017]
- Young Alberta engineers face off in robotics showdown - CBC.ca - February 13th, 2017 [February 13th, 2017]
- Cougar robotics team advances to Super-Regionals - Times Bulletin - Times Bulletin - February 13th, 2017 [February 13th, 2017]
- South Carroll Robotics teams compete at Maryland State Robotics Competition - Carroll County Times - February 13th, 2017 [February 13th, 2017]
- Cave Spring High School's Robotics Club wins in the First Tech ... - Roanoke Times - February 13th, 2017 [February 13th, 2017]
- FIRST Robotics Competition - Wikipedia - February 13th, 2017 [February 13th, 2017]
- Designing robots to look more like ostriches can solve a key problem for our future biped overlords - Quartz - February 14th, 2017 [February 14th, 2017]
- More than 1000 high school students expected to Battlefield HS robotics tournament - PotomacLocal.com - February 14th, 2017 [February 14th, 2017]
- Event to look at Scotland's pivotal role in robotics - The Scotsman - February 14th, 2017 [February 14th, 2017]
- Kennett Coders to compete in NH State Robotics Championships on Saturday - Conway Daily Sun - February 14th, 2017 [February 14th, 2017]
- Are there enough robots? - Robotics Tomorrow (press release) - February 15th, 2017 [February 15th, 2017]
- Girl Scouts of Southern Illinois robotics team makes state tournament - Alton Telegraph - February 15th, 2017 [February 15th, 2017]
- Intuition Robotics raised $6 million for its ElliQ elder care assistant robot - TechCrunch - February 15th, 2017 [February 15th, 2017]
- Richmond robotics team gears up for districts - New Baltimore Voice Newspapers - February 15th, 2017 [February 15th, 2017]
- Microsoft lets you crash drones and robots in its new real world simulator - The Verge - February 15th, 2017 [February 15th, 2017]
- Makeblock's Lego-like 'Neuron' teaches kids robotics and code - Engadget - February 15th, 2017 [February 15th, 2017]
- West Ridge robotics team maneuvers into national championship - Austin American-Statesman - February 15th, 2017 [February 15th, 2017]
- Immokalee High team set for robotics state championships Friday - Naples Daily News - February 16th, 2017 [February 16th, 2017]
- What has Robotics got in store for our future? - RTE.ie - February 16th, 2017 [February 16th, 2017]
- Uber Is Becoming a Robotics Company, CEO Says - Yahoo News - February 16th, 2017 [February 16th, 2017]
- 3Doodler's new kits help kids craft their own robots - Engadget - Engadget - February 16th, 2017 [February 16th, 2017]
- Magnetic Control Could Help Robots Navigate Inside Your Body - IEEE Spectrum - February 16th, 2017 [February 16th, 2017]
- Boston's new hub, MassRobotics, is like a WeWork for robotics startups - TechCrunch - February 16th, 2017 [February 16th, 2017]
- 3Doodler announces a robotics kit, Star Trek and Powerpuff Girls ... - TechCrunch - February 17th, 2017 [February 17th, 2017]
- Chart: Are Robots Replacing High-Cost Workers? - Seeking Alpha - February 17th, 2017 [February 17th, 2017]