- Advertisement -
- Advertisement -

Thyra Hedge Capitalizes on the AI Boom

- Advertisement -

Stockholm (HedgeNordic) – After experiencing both ups and downs in performance over the past few years, tech-focused long/short equity fund Thyra Hedge is enjoying its best year since inception with an advance of 11.6 percent in the first five months of 2023. The fund managed by Inge Heydorn has successfully capitalized on the increasing popularity and advancements in artificial intelligence (AI).

The buzz and boom surrounding AI, with chipmaker Nvidia playing a significant role as one of its primary beneficiaries and enablers, have greatly contributed to Thyra Hedge’s strong performance this year. “We have been heavily exposed to semiconductors and AI, so the AI trend is clearly boosting our performance,” Heydorn tells HedgeNordic. While the fund has achieved strong returns from its investment in Nvidia, Heydorn emphasizes that it is the broader AI ecosystem that has been the driving force behind his fund’s performance this year. “It is the ecosystem around AI that has driven performance.”

“We have been heavily exposed to semiconductors and AI, so the AI trend is clearly boosting our performance.”

Heydorn and his team adopt a thematic approach to construct a market-neutral portfolio for Thyra Hedge. “In technology, what often happens is that a big innovation enters the market and then it takes many years for it to be implemented,” Heydorn previously told HedgeNordic. “Companies positioned correctly in a particular trend are going to win,” he added. “But it is always going to take time.” Heydorn further emphasizes that the acceleration of AI adoption “will help performance going forward, as we are still in the early stages of this trend.”

“[The acceleration of AI adoption] will help performance going forward, as we are still in the early stages of this trend.”

Thyra Hedge’s sizable long exposure to Microsoft has also contributed to its strong performance year-to-date. Heydorn explains, “In the software and cloud space, we believe AI is becoming a tangible factor in results, with Microsoft’s Azure business starting to benefit from its partnership with OpenAI.” As of the end of May, Thyra Hedge had 6.9 percent of its long exposure to Microsoft.

The first-quarter earnings season has fueled Heydorn’s optimism about the prospects of the highly-valued tech sector, particularly with cost-cutting expected to drive earnings growth. “Cost cutting continues to be a feature of most of the results we are seeing,” says the tech-focused fund manager. “The tech sector is well placed to exercise cost control,  as high gross margins provide a lot of flexibility in the cost structure,” he elaborates. “This is one of the ways we anticipate tech driving earnings growth materially higher than the market this year and one of the things which keeps us optimistic overall.”

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Improved Environment for Single Shorts and Options Protection

Stockholm (HedgeNordic) – Marcus Plyhr’s cautious stance on markets helped Norron Select minimize losses in 2022, closing the year with a low single-digit decline...

Strong May Performance for Nordic Hedge Funds

Stockholm (HedgeNordic) – The Nordic hedge fund industry is experiencing one of its strongest years on record, marked by seven consecutive months of positive...

New Billion Club Member

Stockholm (HedgeNordic) – The Nordic hedge fund industry is welcoming a new member to its exclusive €1 billion club: Asgard Fixed Income Risk Premia...

Coeli Partners with Peter Norhammar for Real Estate Fund Launch

Stockholm (HedgeNordic) – Swedish asset manager Coeli is partnering with real estate specialist Peter Norhammar and NRP Anaxo Management to launch a new long/short...

Borea Welcomes New Majority Owner

Stockholm (HedgeNordic) – Norwegian fund boutique Borea Asset Management has a new majority owner. A consortium of independent banks within Frendegruppen, Norway’s second-largest banking...

Estlander Awaiting the Black Swan

Stockholm (HedgeNordic) – Finnish systematic asset manager Estlander & Partners has been in the business of providing so-called “crisis alpha” for decades through one...

Allocator Interviews

Latest Articles

In-Depth: High Yield


Request for Proposal

- Advertisement -