Time, Technology, Trust, and Leadership

Time is our most valuable resource, one that we cannot renew and the one element in decision making that we are always mindful of, particularly when it comes to investing.

Things happen fast in the 21st century. Technology has made the element of time even more significant. Digital transformation, cloud computing and now generative AI add up to real value creation. We are starting to see evidence of this already, in the form of improved productivity. One of my friends, who is also a Big Data engineer reports that discussions on how to harness generative AI are prevalent across board rooms in every industry, as executives chart a strategic road map accordingly. This is especially true in our current macro environment. Historically, interest rates have been higher, and have been lower; however the magnitude and velocity of change in interest rates is the highest ever. This means even more uncertainty, and an even greater incentive on the part of corporations to create efficiency in their processes and labor force. The race is on.

Trust is essential in all decisions, including stock picking. As fund managers, we look to the future for opportunity; our core belief is that innovation and secular trends are essential to value creation. And yet trust, inherently, is based on the past.

This is why we value leadership; we see how trustworthy leaders are essential in ensuring a clear road map to value creation and long-term success.

One of our favorite examples (and a top performer in our 2023 portfolio) is Uber Technologies. Uber has all the characteristics of a growing and scalable platform: leading logistics technology, growing market share, expansion into new markets, and margin expansion. More than that, we appreciate Uber’s CEO, Dara Khosrowshahi, who has shown true leadership by staying the course even as the long-term value proposition was not always apparent.

At Defender Fund, we value technology, but consider the human advantage key for success.

Irit Jakoby

Irit Jakoby is Co-Founder and Director at Defender Funds, a hedge fund investing in US markets.

Dedicated to my friend Nadine, who shows me how to always have hope and act accordingly.