Despite geopolitical tremors in the Strait of Hormuz rattling global energy markets, financial advisor Darius McDermott maintains that technology hardware remains the primary engine for US and Asian equity growth. The managing director of Chelsea Financial Services continues to lean into AI-exposed assets while bolstering inflation hedges.
McDermott, who oversees the VT Managed Chelsea funds, relies on the London-listed Polar Capital Technology Trust as a cornerstone for his portfolios. The trust offers broad exposure to industry titans including Nvidia, Alphabet, Apple, and Taiwan Semiconductor Manufacturing Company. While he acknowledges a brief cooling period in July, he remains bullish on the long-term momentum of the technology sector.
Beyond tech, McDermott has increased his allocation to emerging markets and Asia, where he notes that seventy per cent of the opportunity set resides. To navigate ongoing volatility, he maintains a significant gold position, citing its role as a persistent safe haven favored by central banks. He has also expanded his energy exchange-traded funds to mitigate inflation risks, noting that his renewable energy holdings have shown improved performance throughout the year.
His fund range—covering Cautious, Balanced, and Aggressive growth profiles—has consistently outperformed the IA Mixed Investment Shares Sector over the last five years. Within these portfolios, the Guernsey-headquartered Schiehallion trust, managed by Baillie Gifford, stands out for its recent recovery. After previously trading at a steep 50 per cent discount, the trust has gained 40 per cent year to date, driven by stakes in SpaceX and Anthropic. Despite these gains, McDermott remains watchful of regional headwinds, specifically in India, where higher oil prices and currency weakness have created recent friction.
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