“Our challenge is to identify the companies poised to benefit from AI"

In the last MAPFRE AM Interview of the Month, we sat down with Nicole Sophie Gómez Adenis, an American equity and global multi-asset manager. Nicole Sophie is making progress with her team on an investment methodology that integrates new technologies, giving them “a broader perspective” of the market. She continues to see progress in the technology sector, although she believes that after the boom seen since last year, the opportunities offered by digitalization and tools such as AI can be found in other sectors, depending on how companies adapt to the new scenario.

• How long have you been at MAPFRE AM and what are your responsibilities?

I've been at MAPFRE AM for more than three years now. My team is in charge of equity portfolios for US companies and global multi-asset portfolios. Within the team, I fulfill various roles, although the one I’ve focused on the most is merging traditional management, based on the analysis of companies and the macroeconomic context, with the development of analytical and computational tools.

• You specialize in quantitative investment profiles. What are the advantages of this type of investment?

When managers take quantitative aspects into account, we make our work easier in different ways. Both in terms of the analysis, since it allows us to analyze large swaths of information systematically, and in the implementation and monitoring of portfolios. Using these tools for ongoing market analysis provides us with a broader perspective when it comes to decision-making, as well as real-time alerts about market developments.

• Taking into account the funds you manage with your team, what are the aspects you value most at a company? Which indicators do you consider key?

On our team, we value high-quality companies that trade at reasonable ratios. I particularly value future estimates (profits, sales, etc.) which provide information from a variety of different sources with accurate updates. In this way, using models and algorithms, it’s possible to quickly find companies that have favorable dynamics in their future indicators that may not yet be reflected in their price dynamics.

• The past two months have been very positive when it comes to equities across all markets. Do you believe this performance is justified?

Yes, in the first quarter of 2024, we’ve seen a rise in prices that has continued the trends seen at the end of 2023: the overwhelming leadership of the technology sector boosted by the spectacular results of semiconductor companies. Much of the sector is experiencing unprecedented demand related to infrastructure for Artificial Intelligence.

• The US stock market is performing particularly well, and many companies are now trading at demanding ratios. Do you think there’s still room for growth in this market?

Over the past month, we’ve seen corrections, but we believe that there’s still room for many companies, so we’re taking the opportunity to increase our investments in various assets, including the US stock market. We’re seeing several activity indicators improve in non-technology sectors, and we’re also seeing more and more signs of growth.

• Technology is capturing the attention of analysts and investors. Do you believe there’s still potential in this sector? Are the best-positioned companies in the AI race (big tech, chip manufacturers) a safe bet?

I think technology is a sector where we’ll continue to see positive results, but I don't think there’s such a thing as a sure bet. Our challenge is to know how to identify the specific companies poised to benefit from future advancements in Artificial Intelligence, which may span across various sectors of activity.

• Positions in the technology sector sometimes think more about the long term than about the actual situation of companies. What would you say about this type of investment?

I think it's important to take both aspects into account, especially in environments where interest rates are no longer negative.

• What would your advice be for somebody starting out in the asset management industry?

Asset management is a constantly changing sector, where experience combined with new technologies are the keys to success. So my advice to new generations of asset managers would be to remain curious and to keep learning, taking advantage of the enormous progress in recent years in both computing and data quality.

• Hobbies: I love finding time to enjoy music, but most of all, spending quality time in the mountains with my family, friends and my two dogs.
• A dish: I like strong flavors, like a nice ceviche or shrimp vindaloo.
• A city/country: Talloires, a village in the Alps
• A music group/singer: I couldn’t say just one, I like so many different styles. Recently, I've been listening to TOOL a lot.