China’s top-ranked hedge fund managers change tactics to ride the changing wave of overseas investments and market dynamics
biggest hedge fundscut holdings of US hyperscalers and
Nvidiaand migrated into the hardware makers on the AI supply chain in the second quarter, marking a shift of their playbook on overseas investment in response to evolving market dynamics.
Perseverance Asset Management International slashed its position on Nvidia by 72 per cent last quarter, while significantly adding holdings of memory chipmaker Micron Technology and flash memory product maker SanDisk, according to its latest 13F filings to the US Securities and Exchange Commission.
hedge funds, made similar recalibrations of their portfolios in the period, shifting out of major tech stocks and into the device makers that thrive on the AI infrastructure buildout, their separate filings to the regulator showed.
The reshuffles indicate that China’s top-ranked hedge fund managers were recalibrating portfolios to fit into the fast-changing narrative of the global AI trade, in which buying became more selective and stock picks turned more demanding, according to market observers.
Investors were turning cautious about those hyperscalers splurging capital on AI infrastructure investments and chasing other winners standing to benefit from the buildout.
tech hardware makers, such as producers of memory chips and optical transceivers used in AI data centres, were on a roll over the past few months, while mega tech stocks languished on doubt about whether massive capital spending would fuel monetisation.
“This is the point where the AI trade begins growing up,” said Stephen Innes, a managing partner at SPI Asset Management. “The first stage was about buying everything exposed to compute. The next stage will probably be about determining who actually earns economic rent from it. The market is already making that transition.”