Hosking Partners is a London boutique founded in 2013 by Jeremy Hosking, a portfolio manager at Marathon Asset Management for over 25 years. It runs a single global equity strategy built on the capital-cycle, supply-side approach — contrarian, long-term, and unusually diversified (350+ holdings) under a multi-counsellor model, managing around $5.5bn.
This report says that in 2024, social issues (like how the energy transition affects communities) will replace decarbonization as the new focus in responsible investing. The author, Hosking Partners, is cautiously optimistic. They note that energy transition talks now center on local politics and social costs, not just global goals. AI's rise, especially China's DeepSeek model, adds uncertainty to tech giants like Microsoft, Google, and Nvidia. No specific stocks are recommended, but two long-term themes are highlighted: social-driven energy investments and AI's disruption of Big Tech. DeepSeek is mentioned as a key example of non-Western AI power, but no buy/sell advice is given.
One-sentence summary: In 2024, the "social" pillar of responsible investing will replace decarbonization as the new focal point, with the author adopting a [cautiously optimistic] stance.
The author believes that the "social" category in responsible investing was systematically undervalued by quantitative rating agencies in 2024 and will see a surge in attention this year. The article points out that this area is "often underweighted by the quantitative ratings agencies due to its hard-to-measure nature," meaning that quantitative rating agencies tend to underweight this area because of its difficulty to measure. The author judges that two major themes will push social issues into the spotlight: first, the social backlash from the energy transition, where resilience, adaptation, and local politics are replacing multinational decarbonization targets as the core of policy; second, the impact of the rise of artificial intelligence on security, regulation, and the prospects of "Big Tech" giants.
The article emphasizes that the social costs and political resistance of the energy transition are reshaping global policy discussions. The author notes that the "multinational decarbonisation targets" that once dominated discussions are being replaced by "resilience, adaptation, and local politics," meaning that resilience, adaptation, and local politics are becoming the main issues shaping broader discussions and policies. This implies that investors need to focus on social conflicts arising from the energy transition, such as job displacement, community impact, and energy price volatility, rather than solely tracking carbon emission data.
The author argues that the explosion of artificial intelligence will profoundly impact security, regulation, and the competitive landscape of tech giants, with recent claims by China's DeepSeek AI model intensifying the discussion. The article states that this topic "has been thrown into sharp relief in recent weeks thanks to the claims made by China’s DeepSeek AI model," meaning that due to the claims made by China's DeepSeek AI model, this topic has become particularly prominent in recent weeks. The author does not name specific Big Tech companies but implies that existing giants (such as Microsoft, Google, Nvidia, etc.) may face regulatory pressure and changes in the competitive landscape, while the emergence of DeepSeek highlights the rise of non-Western AI power.
The article does not provide specific position recommendations but clearly identifies two major long-term focus areas: energy transition investments driven by social factors, and the disruptive impact of AI on the tech industry landscape. Readers should note that this is the perspective of Hosking Partners as an active management fund. Its emphasis on social issues may imply criticism of the current ESG rating system (which overemphasizes environment and governance) and suggests that its positions may have already tilted toward related areas.
| Instrument | Direction | Author's One-Sentence Stance | Key Data |
|---|---|---|---|
| DeepSeek AI | Not explicitly stated | Discussed as a landmark case of non-Western AI power rising, highlighting shifts in the competitive landscape | Recent statement "thrown into sharp relief" |
| Microsoft/Google/Nvidia and other Big Tech | Not explicitly stated | Implied to face regulatory pressure and changes in the competitive landscape, but not specifically named or given an opinion | No specific data |