Jack Hu’s Phoenix Growth Fund is outperforming many rival growth funds by using Anthropic’s artificial intelligence platform Claude to analyse potential investments. Boutique Capital supports the fund by handling compliance, administration, and licensing. The AI model assesses companies based on around 80 parameters, including news flow and sector momentum, reducing the time Hu spends studying term sheets from 15 minutes to just one.
Hu believes AI is developing rapidly, which will disrupt many software-as-a-service (SaaS) businesses. However, he is betting that SaaS companies with deeply embedded workflows, regulatory hurdles, high switching costs and mission-critical infrastructure will survive. As a result, he has recently added Pro Medicus and WiseTech Global to the fund. Pro Medicus provides medical imaging software. WiseTech Global develops and delivers software solutions to the logistics industry.
Phoenix’s portfolio is divided into three buckets: equity capital market deals, mostly ASX-listed stocks, and alternative assets. Many stocks graduate from the first bucket, made up of equity capital market deals, to the second bucket, which comprises 35 per cent of the fund. Currently, the first bucket is filled with gold, silver and rare earths stocks. The third bucket includes options, managed funds and companies preparing to float, like SpaceX.
Phoenix has avoided the losses suffered by other growth funds, returning 6 per cent in the three months to January and climbing 32 per cent over the past year, outperforming its benchmark by 22 per cent. This is partly due to its AI-driven approach and diversified portfolio structure, allowing it to capitalise on opportunities while mitigating risks.
