Polar Capital Dumps HubSpot, Shifts 10% to Nvidia After 22% ETF Drop
Polar Capital’s $12 billion tech fund led by Nick Evans has exited HubSpot, SAP, ServiceNow and Adobe holdings as a US software ETF slides 22% year-to-date due to AI competition. He now allocates nearly 10% to Nvidia and refocuses on semiconductors, networking and data-center infrastructure.
1. Fund Exits Application Software
Polar Capital’s $12 billion global technology fund, managed by Nick Evans, has fully liquidated its positions in HubSpot, SAP, ServiceNow and Adobe. Evans cites rapid AI-driven code generation and internal tool development by corporate clients as an existential threat to traditional application software models.
2. Software ETF Performance
An exchange-traded fund tracking US software stocks has fallen 22% so far this year, underperforming semiconductor peers as AI accelerates demand for chips. This contrast underscores investor rotation away from application software toward hardware and infrastructure plays.
3. Portfolio Reallocation to Infrastructure
Evans has increased exposure to semiconductor companies, with Nvidia representing nearly 10% of the portfolio. He has also boosted stakes in networking equipment, fiber-optic suppliers and power and energy infrastructure businesses that support data centers.
4. Implications for HubSpot
The exit by a top technology fund highlights growing skepticism about HubSpot’s long-term valuation under AI-driven disruption. Potential pressure on free cash flow and equity compensation costs may intensify as the company pursues AI startup acquisitions to defend its growth trajectory.