From Copper to Healthcare: How PM Capital Is Repositioning for What Comes Next

Why It Matters

Understanding these structural shifts helps investors allocate capital to sectors with lasting growth potential while avoiding overvalued hype, enhancing portfolio resilience in a volatile global environment.

Key Takeaways

• Deglobalization drives fragmented supply chains, raising industrial costs.
• European banks show strong loan growth and attractive valuations.
• AI hardware adoption creates long‑term opportunities in manufacturing.
• Beverage sector benefits from pricing power despite declining volumes.
• Healthcare valuations rebounded, offering value after multi‑year underperformance.

Summary

PM Capital’s Kevin Bati outlined how macro‑structural shifts are reshaping investment themes, from copper’s over‑hyped rally to a renewed focus on healthcare, European banking and industrials. He argued that recent geopolitical events—UAE’s OPEC exit, the US‑Iran conflict, and heightened US‑Canada tensions—reinforce a longer‑term trend toward deglobalization and supply‑chain fragmentation, which in turn raises costs for manufacturers and fuels a shift toward AI‑driven hardware and automation.

The firm sees a clear bifurcation in the market: AI‑heavy “halves” continue to surge while traditional sectors lag. European banks, having cleaned up balance sheets after the debt crisis, now enjoy mid‑single‑digit loan growth, strong ROE and valuations of 10‑12 × earnings, making them attractive. Meanwhile, copper’s price has doubled but stock multiples have exploded 8‑10 ×, prompting a reduction in exposure. By contrast, healthcare, despite a recent six‑year underperformance, has a 15‑year track record of outpacing the S&P 500, presenting a value opportunity as multiples normalize.

Bati highlighted concrete examples: the UAE’s OPEC departure reshapes oil dynamics; copper’s valuation stretch reflects both AI‑driven demand and supply disruptions; beverage giants like Heineken and Diageo rely on pricing power to offset falling per‑capita consumption; and healthcare firms such as CSL have seen steep deratings, opening entry points. These anecdotes illustrate how sector‑specific fundamentals are diverging amid broader macro pressures.

For investors, the takeaway is to align capital with sectors that possess durable tailwinds—European banks, AI‑enabled industrials, and undervalued healthcare—while remaining vigilant about valuation bubbles in over‑hyped areas like copper and the broader AI hype. Diversifying across these themes can mitigate risk from embedded inflation and the potential “music stopping” in the AI momentum trade.

Original Description

Something unusual is happening in global markets. While whole sectors are down up to 60%, a handful of AI stocks are carrying the entire market back to record highs. PM Capital's Kevin Bertoli calls it the AI haves versus have nots — and he thinks the gap is only going to widen. In this conversation, he breaks down the risks hiding beneath the surface rally, why he's backing beaten-down spirits stocks and European banks, and the one sector he's just starting to pay close attention to.

This interview was filmed Monday 25th May 2026.

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TIMECODES

00:03 - The Reality of Deglobalisation & Geopolitical Shifts

01:44 - AI Haves vs. Have-Nots: Why the Tech Gap is Widening

03:27 - Why PM Capital Has High Conviction in European Banks

05:10 - Reshoring & Automation: Finding the Next Industrial Winners

07:05 - The Beverage Sector: Cyclical Rough Patch or Structural Reset?

10:01 - Recent Portfolio Additions & the Global Healthcare Opportunity

12:27 - Why PM Capital Are Exiting Copper & Reducing Commodity Exposure

14:07 - The Two Biggest Macro Risks Facing Investors Today