The second annual Sohn Montreal Investment Conference brought together hedge fund managers and alternative asset managers on Thursday, with pitches ranging from artificial intelligence to gold mining. Whale Rock Capital Management LLC founder Alex Sacerdote expressed strong optimism about AI, predicting that Anthropic PBC, the maker of the Claude chatbot, could reach half a billion users. Sacerdote described the current stage of AI as an L curve going straight up, emphasizing that the enterprise sector remains largely untapped and that the first three years of AI were akin to a search engine on steroids. He noted that Anthropic's daily active users have grown rapidly from two million to 14 million.
AI Investment and Anthropic
Whale Rock, a significant investor in Anthropic's Series G round earlier this year, sees enormous potential ahead. Sacerdote dismissed comparisons to the dot-com era, arguing that AI is still in its early stages. The conference also featured a pitch from StemPoint Capital LP, which highlighted French biotech company Abivax SA as a potential M&A target. Chief investment officer Michelle Ross compared Abivax's drug obefazimod to Humira, suggesting it could be a pipeline product for another firm. Despite recent concerns over cancer cases in a clinical trial, analysts believe the fears are overdone, and Abivax shares rose up to 16 per cent on Thursday.
Gold Mining Opportunity
Toronto-based Waratah Capital presented Artemis Gold Inc., the operator of the Blackwater mine in British Columbia. Chief investment officer Brad Dunkley argued that the market has not fully valued Artemis's future production profile, noting that the company trades at a discount to comparable Canadian gold producers. With insiders owning about 36 per cent of the company, Dunkley projected that Blackwater could generate over $2 billion in annual free cash flow by 2029 at current gold prices, potentially delivering more than 50 per cent upside from current levels.
The Sohn Montreal conference serves as a key gathering for investment ideas, with participants including KKR & Co., Blackstone Inc., Third Point Management, and Bridgewater Associates. The event also drew attention to upcoming jumbo IPOs from the United States.
