Our assets under management are primarily invested in global technology companies. Portfolio construction is bottom-up, leveraging the fund manager’s expertise and our team’s technology domain knowledge to pursue absolute returns. Based on the macro view, we trim and add long or short positions to extract alpha from the market. Key strategies include sub-sector rotation and thematic investments.
Why Equities?
Post-global financial crisis, interest rates remained low while investors flocked to fixed income. With rising rates and an overbought bond market, we see significantly better opportunities in global equities. Equities tend to outperform bonds during periods of reflation because the former are more inflation‑transferable. The technology sector’s equities are less sensitive to rising rates and oil prices, providing more attractive returns to investors.
Why Technology Sector?
Some of the world’s most exciting companies are technology firms such as Apple, Google, Facebook, Amazon and Alibaba. These companies can grow into large caps within a decade. Technology provides fertile ground for innovation and invention and offers higher potential for sustained growth. As the world becomes more interconnected, semiconductors and AI will impact every industry. Companies worldwide are increasing capital expenditure in technology—FinTech, MedTech, EdTech, RegTech and LawTech—to stay competitive. Cash‑rich technology giants are relatively less exposed to commodity price fluctuations, making the sector attractive.
Three-Fold Investment Strategy
- Multi-year themes: Identify enduring structural growth themes.
- Catalysts-driven: Navigate themes with well-timed, non-consensus trades.
- Company turning points: Assess technology competitiveness and design wins that drive earnings rebound.
Additional Considerations
- Industry research: We draw on a wide range of industry reports and data providers such as GfK, IDC, MITI, Gartner, IHS, TrendForce, AVC, WSTS, WitsView, Display Search, Strategic Analytic and App Annie.
- Dynamics and mix changes: We monitor product cycles, industry capacity, smartphone penetration, PC unit growth, cloud adoption, AI adoption, valuation changes, classification changes and shareholder/sector mix.
- Locus and consensus changes: We evaluate positioning of long-only funds, hedge funds, QDII and private equity, as well as analyst upgrades/downgrades across multiple time frames.
The investment process is dynamic and subject to change. Clients or prospects can reach us anytime for the latest version of the strategy.