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“3 Things You Need to Know + 1 You Don’t!”
The 3+1 Active Investors Series is BlackRock’s weekly investor video franchise, created to start your week with insights from the voices shaping markets. Featuring the firm’s leading active investors, each episode highlights three perspectives on what’s driving markets today.

Yes, of course I have a map of middle Earth. I don’t live in the present. I study the past, and I dream of the future. Alright, serious topics.

Good morning. I’m Tony Kim, Head of Fundamental Equities, Global Technology Group. It’s the week of May 18th. And here are three things you need to know, and one you don’t.

Number one. AI capex are approaching one-trillion dollars this year, and the reason: there is a new economy around compute and tokens, effectively a token economy, where compute = revenue. This trend will continue. I suspect this will double to multiple trillions by the end of the decade. And all that technology companies that serve that mission is where we have aligned all of our capital.

Next up. Number two. We have seen one-to-two trillion of market capitalization come out of the software and services. The center of it is around coding and the ability to create software. That has ramifications on the business model of selling code. So how are we investing right now is those aligned with this new token economy around the creation of data, the managing of data, and on the cyber side - the security of the data.

Which brings us to number three. We could have a world where we have AI that builds AI.Humanoid robotics in scale, autonomous vehicles, autonomous transportation systems by the millions. Scientific breakthroughs of AI and quantum computers that can simulate potentially nature. When you see tectonic shifts align yourself with where the puck is going.

And the one thing you don’t need to know… I love movies. I love sci-fi. That’s always been part of my existence. My hot take? The best embodiment of what is happening, The OG. Stanley Kubrick's: 2001 A Space Odyssey. All in that movie is encapsulated questions of the past…the dawn of man. The future. Many of the questions that we ponder today around AI safety. When an entity like HAL– not opening the pod bay doors…

To get more 3+1 and stay up on everything you need to know, and some things you don’t… Make sure to follow us on LinkedIn & YouTube. We’ll see you next week.

3+1 Episode 3: Tony Kim

In this week’s episode of 3+1, Tony Kim, Head of BlackRock Fundamental Equities’ Global Technology team, breaks down the trends driving today’s tech market. He explores the growth of a new compute-driven economy, the implications of falling software costs and how investors can think about positioning as AI progress accelerates.

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Previous episodes

What does it mean? There’s like so many things I wanna say…

Good morning. I’m Mike Pyle, Deputy Head of Portfolio Management at BlackRock. It’s the week of May

11th, and here are three things you need to know, and one you don’t.

Number one…

There’s a lot happening out in the global landscape. There’s the conflict in Iran weighing on investors' minds, particularly given what it means for global energy markets. I’ve also got my eye on the mid-May summit between President Trump and President Xi of China. Are the leaders gonna have a successful summit that continues that truce thru the rest of 2026? What is that gonna mean in terms of next steps?

And there are ongoing developments in AI. A new model, a new capability, new earnings from the frontier labs. Each one of these is consequential for economics, markets, for what the future’s gonna hold.

Number two…

What should investors do with this? Well, I say the 2-D’s: Diversification and Dispersion. Diversification is the key to building a resilient portfolio, but in the world we’re facing, diversification is harder to come by. Then secondly, dispersion. Markets are increasingly separated between the winners and the losers, in a way that’s historically large. That opens up opportunities to deliver alpha. And it’s this combination of diversification and dispersion that I think really describes a lot of what’s important in this landscape given what’s happening in the world.

Which brings us to number three…

Liquid alternative strategies step right into this space. That heightened dispersion gives portfolio managers the ability to go long, go short, deliver uncorrelated alpha through that heightened dispersion. And that alpha can be a source of diversification in portfolios. This adds an additional tool to the toolkit for the most sophisticated institutions, as well as for folks, you know, on Main Street saving for retirement.

And the one thing you don’t need to know...

Well I've been fortunate enough to work at The White House for eight years. Life in The White House is about a daily accumulation of petty indignities– Veep captures that aspect of life in The White House pretty well. My hot take: the White House is more West Wing than Veep. There’s awe and inspiration working in that place alongside dedicated people. It’s a mix of the absurd and the august.

To get more 3+1 and stay up on everything you need to know, and some things you don’t… Make sure to follow us on LinkedIn & YouTube. We’ll see you next week.

Video Playlist

What does it mean? There’s like so many things I wanna say…

Good morning. I’m Mike Pyle, Deputy Head of Portfolio Management at BlackRock. It’s the week of May

11th, and here are three things you need to know, and one you don’t.

Number one…

There’s a lot happening out in the global landscape. There’s the conflict in Iran weighing on investors' minds, particularly given what it means for global energy markets. I’ve also got my eye on the mid-May summit between President Trump and President Xi of China. Are the leaders gonna have a successful summit that continues that truce thru the rest of 2026? What is that gonna mean in terms of next steps?

And there are ongoing developments in AI. A new model, a new capability, new earnings from the frontier labs. Each one of these is consequential for economics, markets, for what the future’s gonna hold.

Number two…

What should investors do with this? Well, I say the 2-D’s: Diversification and Dispersion. Diversification is the key to building a resilient portfolio, but in the world we’re facing, diversification is harder to come by. Then secondly, dispersion. Markets are increasingly separated between the winners and the losers, in a way that’s historically large. That opens up opportunities to deliver alpha. And it’s this combination of diversification and dispersion that I think really describes a lot of what’s important in this landscape given what’s happening in the world.

Which brings us to number three…

Liquid alternative strategies step right into this space. That heightened dispersion gives portfolio managers the ability to go long, go short, deliver uncorrelated alpha through that heightened dispersion. And that alpha can be a source of diversification in portfolios. This adds an additional tool to the toolkit for the most sophisticated institutions, as well as for folks, you know, on Main Street saving for retirement.

And the one thing you don’t need to know...

Well I've been fortunate enough to work at The White House for eight years. Life in The White House is about a daily accumulation of petty indignities– Veep captures that aspect of life in The White House pretty well. My hot take: the White House is more West Wing than Veep. There’s awe and inspiration working in that place alongside dedicated people. It’s a mix of the absurd and the august.

To get more 3+1 and stay up on everything you need to know, and some things you don’t… Make sure to follow us on LinkedIn & YouTube. We’ll see you next week.