Manager Sells Software Stocks After $12B Fund Beats 99% of Peers
Nick Evans’ $12 billion technology fund beat 99% of peers over one year and 97% over five before selling all application software holdings except a small Microsoft stake. He warns that advanced AI coding tools could replicate existing software and threaten firms such as SAP, ServiceNow, Adobe and HubSpot.
1. Fund Performance and Returns
Nick Evans leads a $12 billion technology fund that outperformed 99% of peers over one year and 97% over five, driven by strategic sector rotations.
2. Divestment of Application Software
Evans sold almost all application software holdings—including SAP, ServiceNow, Adobe and HubSpot—retaining only a small Microsoft stake and call options.
3. AI Disruption Rationale
The fund manager warns that advanced AI coding tools can replicate existing software, intensifying competition from both in-house developer teams and AI startups.
4. Portfolio Recomposition
With software stocks sold off, seven of the fund’s top ten positions are now semiconductor companies led by a nearly 10% Nvidia holding, alongside networking gear, fiber optics and data center infrastructure names.