00:00What are hedge funds asking you now about this whole whole space here? Can they continue to chase this momentum,
00:05you think?
00:06Yeah, thanks for having me, Yvonne. It's a hot topic about AI right now.
00:12Recently, we received an email from Investment Bank.
00:16There's been a survey saying it's been very crowded.
00:22About 10% of the hedge fund allocation is investing into semiconductors right now.
00:27It's been historically high. Leverage has been high as well that we have not seen for a while.
00:35And then, you know, like in March, even with the escalation in the Middle East, that was very short-lived.
00:42It's probably the shortest recovery that we've seen in history.
00:47What's interesting is that as soon as the market stabilized, we saw like capital rotated back into AI and technology.
00:56And that's been driving the whole market and creating a lot of dispersion.
01:02Is there anything that you think that is any risk in the radar of this whole AI build-out right
01:08now?
01:08I mean, it seems like everyone is heading to one direction here right now.
01:11Is there anything that you see as a near-term risk?
01:15One risk that we are seeing is a potential liquidity overhang in AI.
01:20We know that there's a significant pipeline in IPOs and supply coming in.
01:26And historically, that usually coincides with market peaks.
01:30But on the opportunity side, we see that the gap between winners and losers is widening structurally.
01:38That really creates a lot of opportunity in dispersion.
01:42That benefits soft-pickers and alpha opportunities.
01:45So what we are seeing for hedge funds is that instead of sticking to better exposure,
01:50they have been shifting to do more dispersion trades, long winners and short losers.
Comments