The Australian Financial Review recently featured our global equities fund in their coverage of the software sector sell-off, highlighting our strategic approach to navigating market volatility during what's been dubbed the "SaaSpocalypse". As an Australian-based investment management firm, we took a tactical short position on a basket of 12 software stocks in January, demonstrating our active portfolio management during periods of market dislocation.
Our portfolio manager Thomas Rice explained that we covered those short positions in late February, viewing the Citrini Research blog post as:
"a sign of capitulation"
This decision exemplifies our approach to identifying market turning points in the software sector. The article noted that hedge funds more broadly turned positive on the software sector after negative bets reached a 17-year high at the end of February, according to Deutsche Bank. Our approach to global equities involves carefully assessing risk-reward dynamics and market sentiment, particularly around transformative themes like AI. By recognising signs of capitulation in the software sector, we demonstrated our ability to adapt positioning in response to changing market conditions. The article also featured other Australian investment managers including GCQ, Hyperion Asset Management, and Ten Cap, all navigating the challenging technology landscape. To read the article, click the link below.