Tech Portfolio Overview - LO - Take a short break - 2025/03/29

Portfolio Overview

03/29

The rout in US and Taiwan continues, with the fear of US recession triggered by universal tariff and weak Michigan U consumer confidence inking 20-yr low. We are certain that we are getting closer to the inception date of reciprocal tariff on Apr 2nd, but not certain about % of tax rate. Hence we can say that 50% uncertainty (timing) is likely to be removed soon, while the rest 50% uncertainty (magnitude) will test the tolerance of investors. GS US team assumes an estimated 15% tariff - which will most likely become a benchmark temporarily before any other brokers propose other numbers. On initial AUM of $150M, current Cash level $19M, Return since inception fell to 1.2%. That is a quite large correction.

We think the fast tech rout may take a pause as platform HFs react fast and may come back to cover short on dip. For tariffs taxed on IT goods produced in Mexico/Canada, it takes at least 6mon to transfer production location, and hence in 2Q/3Q we will likely see downward revision in tech companies' guidance.

Portfolio Changes

We fine tuned with adding value and dividend names.