Niklas Lundin is a visionary fund manager who has always been passionate about investing in the future. Since 2023, he has been responsible for Handelsbanken’s Global Digital fund, with a keen interest in digitalization as the most exciting structural theme.
Lundin’s fascination with technology is evident as he effortlessly identifies a model of a band recorder on the table during our conversation. From the introduction of email in the finance industry to now using AI tool Notes for Japanese news summaries in podcast format, Lundin has witnessed and embraced the evolution of technology.
Partly raised in the US, Lundin considers himself fortunate to have experienced periods of technological leaps. His brother, who resides in a tech hub, continuously inspires him with innovative ideas that shape his investment philosophy. Lundin’s approach to investing today remains consistent with his inception of one of Sweden’s first concept funds, Skandia Time Global, in the late 90s.
Reflecting on the recent trade-induced market turbulence, Lundin maintains his long-term perspective, foreseeing a future where everything becomes more affordable. Adjusting the fund’s focus from digital infrastructure to software companies, Lundin highlights investments in consumer stocks like Spotify, Storytel, and Netflix, recognizing their resilience in volatile markets.
Notably, Lundin emphasizes the importance of pricing power in companies to avoid compromising margins, especially amidst market fluctuations. Increasing exposure to Microsoft and reducing positions in Apple, Lundin rationalizes his decision based on changing dynamics in the tech industry, particularly in China and Vietnam.
Analyzing the financial performance of major US tech companies, Lundin underscores the significance of substantial AI infrastructure investments, leading to potential returns. He illustrates a flywheel effect, demonstrating the perpetual cycle of investing in AI infrastructure, new products, and future users to drive growth and innovation.
Moreover, Lundin discusses the digitalization of the public sector, highlighting investments in companies like Axon and Tyler that utilize AI to enhance law enforcement efficiency. With a focus on digital transformation rather than mere technology, Lundin explores opportunities in sectors like construction, with holdings in Autodesk and Bentley, aiming to optimize productivity levels significantly.
In essence, Niklas Lundin’s strategic investment approach blends technological innovation with long-term growth prospects, positioning the Global Digital fund to capitalize on evolving market trends and transformative opportunities in the digital era.