After a more muted, albeit still challenging, first quarter, multi-strategy fund Visio Allocator regained momentum starting in April and delivered its strongest month on record in May, marking the best monthly performance in the fund’s more than 16-year history. The fund advanced 15.3 percent in May, benefiting from continued strength across memory-chip markets, where some of the fund’s largest holdings – including SK Hynix, Micron Technology, and Sandisk – have emerged as key beneficiaries of the artificial-intelligence-driven semiconductor boom.
“Allocator returned 15.28 percent in May, marking the strongest monthly performance in the fund’s more than 16-year history,” writes the Finnish team in an update to investors. Visio Allocator employs a flexible multi-strategy approach, allocating capital across equities, fixed income, and market-neutral strategies. The long/short equity book was the primary contributor to returns in May and has also been the main driver behind the fund’s year-to-date gain of 13.6 percent through the end of May.
“Allocator returned 15.28 percent in May, marking the strongest monthly performance in the fund’s more than 16-year history.”
The fund’s equity exposure is built around several structural investment themes, with artificial intelligence remaining the most prominent. Having highlighted the theme already last year, the team maintained conviction throughout recent market volatility. “We maintained a high equity allocation throughout the month, allowing the fund to benefit from the strong momentum in AI infrastructure-related investments,” writes the team. “Our investment focus remains unchanged: companies benefiting from the development of artificial intelligence, particularly within semiconductors, data centers, and their broader value chains.”
“Our investment focus remains unchanged: companies benefiting from the development of artificial intelligence, particularly within semiconductors, data centers, and their broader value chains.”
The strong performance across memory markets translated directly into returns for Visio Allocator, with SK Hynix, Micron, and Sandisk emerging as the biggest contributors during May. As investment into global AI infrastructure continues to accelerate, semiconductor companies are benefiting from rising demand for high-performance computing chips, tightening supply dynamics, and improving pricing power across memory markets.
“DRAM contract prices are expected to rise by several tens of percent during the current quarter, while NAND prices are anticipated to increase at a similar pace,” explains the team at Visio Allocator. DRAM, or dynamic random-access memory, is essential for AI servers and high-performance computing workloads, while NAND memory is used for long-term data storage across servers, devices, and data centers. “Demand from hyperscale operators and AI server builders continues to absorb available supply, while manufacturers prioritize higher-margin server DRAM and HBM memory products,” the team continues, referring to high-bandwidth memory, a critical component increasingly used in AI accelerators and advanced chips.
Despite the strong rebound in April and May, the team remains cautious and continues to monitor geopolitical developments and macroeconomic risks closely. “We continue to closely monitor developments in the Middle East, as well as the impact of persistently elevated oil prices on the real economy,” says the team. “Protective option positions may be added when warranted, particularly if market sentiment begins to deteriorate.”
