The concept of virtual reality has been a staple of science fiction for a long time. But the advent of the Metaverse has brought the likelihood of a three-dimensional world closer to reality. There are many questions that arise from such a scenario and we assembled key members of our Fundamental Growth and Core equity research team together to tease out what the Metaverse might look like, how far away it is, and what investors should be considering as it takes shape.
The early building blocks of the Metaverse are in place, such as widely-available connectivity, real-life rendering on PCs, and virtual (V/R) and augmented reality (A/R) headsets. But it is still unclear how all these pieces will be assembled and how they might change in the process. Many companies have different ambitions for the Metaverse but the basic idea is that we’ll be immersed in the experience, and not just looking at it. Mass adoption of an alternative 3D world, however, is complex and dependent on the standards adopted, bandwidth availability as well acceptable transactional currencies, as well as many other considerations.
The opportunity around the Metaverse theme is vast but there is also a considerable amount of speculation and hype; this is where our team’s investment philosophy and process keeps us grounded. Philosophically, we look for quality companies at reasonable valuations that can deliver stronger and more enduring growth than the market expects and we concentrate our portfolios in our highest conviction names.