Fund Beating 99% of Peers Sees Few Software Firms Surviving AI

Fears that AI tools like Anthropic’s Claude Cowork will disrupt software businesses sent their stocks tumbling this year. 

Photographer: Gabby Jones/Bloomberg

Selling software stocks before the crowd paid off for Nick Evans, a Polar Capital fund manager. His warning to potential bargain hunters: most shares are still toxic and few firms will survive.

“We think application software faces an existential threat from AI,” said Evans, whose $12 billion global technology fund beat 99% of peers over one year and 97% over five.