Stock Stories bring you closer to the heart of our investment strategy. In these short videos, lead portfolio manager Mike Seidenberg discusses a selection of Allianz Technology Trust’s portfolio holdings and how they contribute to our overall strategic objective of achieving long-term capital growth by investing principally in technology companies globally that use technology in an innovative way to gain a competitive advantage.
In this short episode of ‘Stock Stories’, Mike discusses an investment decision that was made and is illustrative of the Trust’s strategy: CrowdStrike
I'm Mike Seidenberg, Lead Portfolio Manager of the Allianz Technology Trust. It's important to remember that all investments come with risk. The technology sector is well known for both growth and volatility. We aim to chart a smoother course in tech investing by focusing on sustainable, secular themes.
Artificial intelligence, cloud computing and cybersecurity are among the trends that excite us. In our view, one company capitalising on all three is CrowdStrike, a next generation security company that unifies protection across endpoints, cloud workloads, identity and data. Our increasingly digital world brings big business risks. CrowdStrike has reimagined cybersecurity to detect malware, stop breaches, and protect modern enterprises.
CrowdStrike has been using artificial intelligence, innovation and cybersecurity. Today its advanced machine learning is trained on the 2 trillion data points collected every day by its security cloud. And Charlotte AI, CrowdStrike's generative AI security product is enabling IT teams to work faster, better and smarter. Early adopters have saved an average two hours per day by accelerating and automating security operations.
Cybersecurity is a competitive market. To grow market share, companies must stay ahead of both competitors and adversaries. Adversaries are constantly changing vectors of attack. Based in the Silicon Valley, our proximity enables us to see first hand next generation security products.
Stocks don't move in a straight line. CrowdStrike is no different. But since going public in June of 2019, when we first initiated the position, its share price is up by more than 900%. Here at Allianz Technology Trust, we can't promise those types of returns for investors, and we aren't making a recommendation to buy shares in CrowdStrike. What we can do is make sure that we continue our endeavour to find great businesses, companies like CrowdStrike, that we believe are setting the pace of technological progress and join them on their journey.
Disclaimers: Past performance does not predict future returns. Securities mentioned in this document are for illustrative purposes only and do not constitute a recommendation or solicitation to buy or sell any particular security. These securities will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.
CrowdStrike Holdings Stock Story: Inside the ATT Portfolio
Allianz Technology Trust (ATT) seeks to identify those companies that are best placed to ride long-term trends such as artificial intelligence (AI), cloud computing and cybersecurity.
The Trust has invested in the likes of the US security-software vendor CrowdStrike, which ATT’s managers believe is capitalising on all three of these trends. CrowdStrike is a next-generation security company that unifies protection across end points, cloud workloads, identity and data.
Providing innovative solutions to cybersecurity threats
An increasingly digital world brings big business risks. We believe that CrowdStrike has reimagined cybersecurity to detect malware, stop breaches and protect enterprises. The company is exploiting AI to innovate the cybersecurity sector. Today, its advanced machine-learning systems are being trained on the two trillion data points that are collected every day by the company’s cloud-security systems.
CrowdStrike also offers Charlotte AI, a generative AI security product that enables IT teams to work faster, better and smarter. Early adopters have saved on average, two hours per day by accelerating and automating security operations. Generative AI refers to AI models that can generate high-quality text, images and other content based on the data that they were trained on.
Cybersecurity is a competitive market, and to grow market share companies must stay ahead of both competitors and adversaries. The latter are constantly changing angles of attack. The team’s proximity to Silicon Valley allows it to see first-hand the latest next-generation security products.
Since going public in 2019, when the Trust first took a position in the company, CrowdStrike’s stock price has risen significantly, as can be seen here: CRWD stock price
The benefits of diversification
However, it is important to remember that past performance is no guarantee of investment success, and this article is not intended as a stock recommendation.
Investing in CrowdStrike involves risk because stock prices usually do not go up in a straight line. Nobody can predict the performance of an individual stock, and there are always potential threats facing any stock. These could include a change in the competitive landscape, the emergence of disruptive new players or technologies, adverse developments in the regulatory environment, or a downturn in a particular sector or the economy in general. All of these developments could affect the CrowdStrike share price. So, it is arguably wiser to spread the risk associated with technology stocks by investing in Allianz Technology Trust, which holds CrowdStrike in its investment portfolio along with other tech stocks chosen by a team of experienced investment professionals.
Article disclaimers
Securities mentioned in this document are for illustrative purposes only and do not constitute a recommendation or solicitation to buy or sell any particular security. These securities will not necessarily be comprised in the portfolio by the time this document is disclosed or at any other subsequent date.
The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. We assume no obligation to update any forward-looking statement.