Perspectives: Episode 133 – Who's Paying for AI?
'Perspectives' by Escala
In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, discusses just how large the AI capital expenditure budgets have become, where the money is coming from, and which parts of the AI supply chain are most at risk of overinvestment. (0:51) It feels as though every major technology company is announcing another massive increase in AI investment. Just how big has this AI spending boom become? (2:00) What's interesting, though, is that the spending doesn't seem to be slowing. If anything, every earnings season the budgets seem to get bigger. (4:10) Microsoft seems...
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Perspectives: Episode 132 - We Need to Talk About Productivity
'Perspectives' by Escala
In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, explores why productivity has become the defining investment and economic challenge - and why getting it right could unlock stronger growth, lower inflation, higher living standards and a more durable bull market (1:00) What do you think? What are you saying to clients? (3:55) Those high expectations tend to be a feature of a mature cycle. Is that more the issue? (5:03) The first was the Prime Minister's new AI strategy. The second was the debate around whether Australia's superannuation system should...
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Perspectives: Episode 131 – The Price of Sovereignty
'Perspectives' by Escala
In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, explores the question: who will pay for the building of strategic capability? From sovereign balance sheets and bond markets to private capital and Australia's superannuation system, she examines how the "Price of Sovereignty" could reshape investing for years to come. (0:44) Can governments actually afford another nation-building cycle? (3:30) Does that mean bond markets become a much bigger part of this story? (5:13) So, the price of sovereignty isn't just the cost of building new...
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Perspectives: Episode 130 – The holiday from history is over
'Perspectives' by Escala
In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, explores why the world is shifting from efficiency to resilience. Drawing on insights from General David Petraeus, the discussion examines how nations are rebuilding strategic capability, why private capital is increasingly funding critical infrastructure, and what the rise of the Sovereignty Trade means for investors. (0:56) For years investors thought of geopolitics and technology as separate conversations. (2:33) What changed? Why are governments suddenly prepared to sacrifice efficiency in favour of...
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Perspectives: Fund Manager Interview with Paul Moore from PM Capital
'Perspectives' by Escala
In this episode, Escala Investment Analyst, David Bruty interviews Paul Moore, founder and Chief Investment Officer of PM Capital. Paul discusses how he and his team implement their contrarian investment philosophy, how the PM Global Companies Fund is constructed, and how healthcare is an emerging theme in the fund’s portfolio.
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Perspectives: Episode 129 – AI Native: The Great Operating Model Reset
'Perspectives' by Escala
In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, unpacks a series of eye-opening conversations with leading AI investors and operators exploring how AI-native companies are redesigning workflows, reshaping industries, and blurring the lines between software, services, and private equity. (1:34) What struck me reading through your notes wasn’t just the excitement around AI – it was that people are starting to describe AI not as a tool anymore, but as an operating system. (4:21) One thing that also came through very strongly in these conversations was...
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Perspectives: Episode 128 – Dispatches from the US
'Perspectives' by Escala
In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, takes us inside the Milken Institute Global Conference 2026, from space-based AI breakthroughs to the massive infrastructure buildout powering the next wave of innovation. (1:09) Alright, you’ve been roaming the halls at Milken earlier this week. Before we get into that, tell us about how it feels on the ground in the US right now. (3:27) You mentioned before you left that there were over 300 sessions across two hotels – the Beverly Wilshire and the Beverly Hilton. (5:03 How did he arrive at creating...
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Perspectives: Fund Manager Interview with Richard Blackburn from CVC Capital Partners
'Perspectives' by Escala
In this episode, Escala Head of Managed Funds, Stephen Dickinson, speaks with Richard Blackburn from CVC Capital Partners. Richard discusses CVC’s origins and evolution into a leading global private equity firm, why Europe remains a particularly attractive market for private equity returns, and how CVC creates value through disciplined underwriting, active ownership and long-term value creation across its portfolio.
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Perspectives: Episode 127 – A World Rewired
'Perspectives' by Escala
In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, explains why today’s geopolitical tensions signal a deeper structural shift – and what it means for markets, alliances, and investors. (1:08) Is the current state of the world only as permanent as Trump remains in office? In other words, is this just a phase, or are we actually living through something more structural? (2:30) So, even if the political backdrop changes, the system itself has already shifted? (4:29) Let’s talk about that, because alliances have always been the backbone of the global...
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Perspectives: Episode 126 – Riding the Shock: Staying loose through uncertainty
'Perspectives' by Escala
In this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, explains how long-term investors are staying loose on the bars in response to the current oil shock. Plus, why managing today’s risks is bringing back yesterday’s solutions - from steering wheel locks to decades-old pipelines. (0:47) Tracey, there’s a lot hitting markets at once. How do you keep your composure? (3:43) Back in 2022 when Russia invaded Ukraine, the oil price hit over $120 per barrel. The peak so far is under that. And yet, despite this, the price at the pump here in Australia is higher...
info_outlineIn this episode of Perspectives, Escala Chief Investment Officer, Tracey McNaughton, discusses just how large the AI capital expenditure budgets have become, where the money is coming from, and which parts of the AI supply chain are most at risk of overinvestment.
(0:51) It feels as though every major technology company is announcing another massive increase in AI investment. Just how big has this AI spending boom become?
(2:00) What's interesting, though, is that the spending doesn't seem to be slowing. If anything, every earnings season the budgets seem to get bigger.
(4:10) Microsoft seems to have convinced the market that the investment is paying off. Was that true for everyone?
(5:58) For Alphabet and Meta, investors are still asking, "Show me how this next wave of spending turns into future earnings."
(6:57) If the hyperscalers are collectively spending more than US$400 billion this year, where is all that money actually coming from?
(8:38) Where does that capital come from?
(10:47) AI has become one of the world's largest consumers of investment capital. The unfortunate thing is this is happening at the same time as bond yields are hitting multi-decade highs.
(12:12) So, Tracey, whenever we see an investment boom of this magnitude, history tells us that eventually somebody builds too much. Is AI heading down the same path?
(12:49) Let's work through the supply chain. Where do you think the risks are highest?
(13:54) What about data centres – surely that's where everyone's worried about a bubble?
(14:41) What about the companies actually making the equipment?
(16:01) So, not all parts of the AI supply chain should be treated the same – particularly when we are talking about capex?