Funds betting heavily on semiconductors and AI hardware are posting returns not seen in years, with one fund up 136% through May
Some hedge funds in Asia are having the kind of year that makes career highlight reels. Multiple funds focused on AI hardware and semiconductors have crossed the 100% return threshold in just the first five months of 2026, riding a wave of demand for chips, memory, and optical components.
The standout numbers are hard to ignore. E20 Capital’s $2B Global Opportunity Investment Fund posted a net gain of 136% through May. WT Asset Management’s long-short China Focus fund returned 103% over the same period, while its long-only fund clocked in at 67.5%. Trivest Advisors recorded 88.9%.
The AI hardware trade is carrying everything #
Look at the regional benchmarks. South Korea’s KOSPI has surged nearly 100% year-to-date. Taiwan’s weighted index climbed 53%. Japan’s Nikkei 225 gained 31%. The Shanghai Composite hit a decade high.
Individual names tell the story even more vividly. Hua Hong Semiconductor has been a major beneficiary of the boom. Zhipu AI, the Chinese artificial intelligence company also known as Knowledge Atlas, saw its shares climb more than 1,000% after listing in Hong Kong in January 2026.
WT Asset Management, led by veteran investor Wong Tongshu, has grown its assets under management to roughly $10B on the back of these results.
What this means for investors #
WT Asset Management’s China Focus fund runs a long-short strategy, meaning it can profit from losers as well as winners. That is a very different risk profile than a retail investor buying a semiconductor ETF at all-time highs.
One notable feature of this rally is its disconnect from crypto markets. The AI hardware investment theme has played out almost entirely in traditional equities, suggesting that institutional capital is gravitating toward companies with tangible revenue and earnings growth rather than speculative digital assets.
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