Discover the potential of AI and the hunt for up-and-coming winners

  • Large-cap growth funds have been performing well thanks to megacap tech holdings
  • MainStay Winslow Large Cap Growth fund is rated four out of five stars
  • Co-portfolio manager Justin Kelly believes in the potential of AI
  • The fund is looking for second and third-order winners from AI
  • Holdings include surgical robotics company Intuitive Surgical and industrial HVAC company Trane Technologies
  • The fund also invested in audio music and media streaming company Spotify
  • Top holdings include Amazon, Microsoft, and Meta Platforms
  • Concerns about Apple’s growth and competition in China
  • Stock futures are higher as investors digest a higher-for-longer Fed
  • Weekly jobless claims, trade deficit, productivity, and unit-labor costs data due

Large-cap growth funds, like the MainStay Winslow Large Cap Growth fund, have been performing well in recent years thanks to their investments in megacap tech companies. However, co-portfolio manager Justin Kelly believes that the next winners will come from second and third-order AI companies. These are companies that are using AI technology to distance themselves from the competition, even if they are not traditionally considered tech companies. The fund has already made investments in companies like surgical robotics company Intuitive Surgical, which is using AI technology to improve its robots and expand the opportunity for robotic surgery. They have also invested in industrial HVAC company Trane Technologies, which provides cooling systems for data centers that are being built for AI. The fund believes that Trane can grow its business by nearly 20% per year. In addition to AI companies, the fund has also invested in audio music and media streaming company Spotify, which has a unique product that is attractive to consumers worldwide. They have also held long-time positions in Amazon and Microsoft, which they believe will continue to deliver high earnings per share growth based on AI. However, there are some concerns about Apple, which is not seen as growing its business and is facing competition in China. The fund is waiting to see if Apple can introduce new AI technology that will make people buy more phones in the future. Overall, the fund remains optimistic about the potential of AI and is actively seeking out companies that are using AI technology to gain a competitive edge. They believe that these second and third-order AI companies have the potential for significant growth in the coming years.

Factuality Level: 2
Factuality Justification: The article primarily focuses on the opinions and investment strategies of the MainStay Winslow Large Cap Growth fund manager, Justin Kelly. It contains a lot of subjective information, such as predictions about the future performance of specific companies based on AI technology. The article lacks objective analysis and presents biased views as if they were universally accepted truths. It also includes repetitive information about the fund’s holdings and the rationale behind their investment decisions.
Noise Level: 3
Noise Justification: The article provides detailed information about various large-cap growth funds and their strategies, particularly focusing on AI technology. It includes specific examples of companies and their performance, as well as insights from the fund manager. The article stays on topic and provides evidence to support its claims. However, there are some repetitive details and unnecessary information that could be considered noise.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the MainStay Winslow Large Cap Growth fund and its investments in companies related to AI technology, such as Intuitive Surgical and Trane Technologies. It also mentions top holdings like Amazon, Microsoft, and Meta Platforms.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article primarily focuses on financial topics, specifically the investments and strategies of the MainStay Winslow Large Cap Growth fund. It does not mention any extreme events or their impact.
Public Companies: MainStay Winslow Large Cap Growth fund (MLRSX), Intuitive Surgical (ISRG), Trane Technologies (TT), Spotify (SPOT), Chipotle (CMG), Amazon (AMZN), Microsoft (MSFT), Meta Platforms (META), Snapchat (SNAP), Pinterest (PINS), Nvidia (NVDA), Apple (AAPL), Moderna (MRNA), Stanley Black & Decker (SWK), ConocoPhillips (COP), Qualcomm (QCOM), Carvana (CVNA), Zillow (Z), Etsy (ETSY), eBay (EBAY)
Key People: Justin Kelly (Co-portfolio manager, CEO, and CIO of Winslow Capital Management), Andy Jassy (CEO of Amazon)

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