J Stern & Co Bets on AI and Luxury Brands

The Luxembourg-domiciled World Stars Global Equity Fund maintains a heavy exposure to US tech, with Nvidia and Alphabet ranking among its top five holdings. While the fund keeps a global outlook, 60 percent of its assets remain in the US, while 35 percent are allocated to Europe. Rossbach expressed admiration for Taiwan Semiconductor Manufacturing Company but noted that the firm prefers direct exposure through Nvidia and Dutch equipment manufacturer ASML, citing governance standards as a primary driver for selection.

Beyond pure technology, the fund maintains a 15 percent stake in consumer goods, including LVMH, L’Oreal, and EssorLuxottica. Another 25 percent of the portfolio is funneled into industrial and infrastructure sectors, specifically companies like EATON that manage power and electrification. Rossbach warned, however, that the massive energy and water demands of AI data centers could serve as a potential bottleneck for the sector's long-term growth.

Looking toward the integration of AI in finance, Rossbach views the technology as a tool for efficiency rather than a replacement for human judgment. He expects automation to streamline portfolio optimization and risk management, allowing wealth managers to focus on high-level decision-making. J Stern & Co, which traces its lineage to an 1805 banking partnership, currently manages assets from offices in London, Zurich, New York, and Malta.