Hedge Fund Deploys A$143m into Microsoft After AI Scare Selloff
GCQ Funds Management declared the software selloff had bottomed and invested A$200m (~US$143m) into beaten-down software names including Microsoft, Intuit and SAP. The A$2bn fund sold luxury holdings to fund the purchases and posted record A$50m net inflows in February despite underperformance of its largest positions.
1. Bottom Declaration and Market Rationale
GCQ’s Chief Investment Officer said the tech sector’s deepest drop came after a speculative disruption scenario from a little-known research outlet rattled markets and prompted a rare government comment, marking what he called the nadir for software stocks.
2. Tech Stock Investments
The Sydney-based fund reallocated roughly A$200m (US$143m) into beaten-down software names, increasing stakes in Microsoft, Intuit and SAP after divesting positions in European luxury goods firms.
3. Fund Performance and Investor Flows
Despite underperformance in holdings such as Swedish portal Hemnet, the A$2bn fund attracted A$50m of net new capital in February, putting it on pace for a record month of inflows.