The YFS Intelligent Wealth Fund has continued to grow and innovate since it began five years ago. Our mission has always been to invest in innovative and disruptive companies that are creating superior value for our society. The fund was formed to help investors to participate in the new wave of innovation and what sets us apart is our commitment to a long-term buy-and-hold strategy, grounded in a proven and consistent approach.
We invest in businesses run by visionary founders who solve society’s most pressing problems. Our agility as a smaller fund allows us to uncover and invest in the most cutting-edge companies, ones often overlooked by larger funds. Our targets are seven pivotal sectors destined to shape the future: connectivity, longevity, fintech, transport tech, automation, renewable energy, and next-generation internet. Black Rock highlighted five of these seven areas as the “Mega Forces” that are shaping the investment landscape and driving returns.
Stock Performance
The enthusiasm around Artificial Intelligence (AI) to revolutionise industries and opening doors in personalised medicine, smart cities, and autonomous vehicles. As a result, technology companies dominating the AI space experienced a surge in stock prices, making growth stocks the best-performing asset class this year.
Our investment in Nvidia Corp has appreciated 62.85% in the last three months and more than 230% year to date. The company is perfectly positioned to benefit from the AI revolution. However, taking the temperature of the market we have reduced Nvidia significantly and eventually, we have sold all our positions as investors seem they are more afraid of missing out on Nvidia gains than losing money but we have decided to proceed with caution. As Warren Buffett said, what the wise man does in the beginning, the fool does in the end.
Shopify’s mission to make e-commerce better for everyone is up 33.93% in the last three months and around 57% year to date. The company helps merchants and entrepreneurs realise their potential at all stages of their business cycle which aligns perfectly with our mission.
Alphawave IP is a niche semiconductor IP focused on developing high-speed wired connectivity IP data infrastructure end markets. The company is founded by three industry leader entrepreneurs who have extensive backgrounds in the semiconductor industry and previously worked for Intel. The share price is up 39.49% in the last three months and around 26% for the year to date.
One of them is the CEO Tony Pialis who has previously sold two companies one to Intel and one to Rambus. Alphawave IP business model is like Arm Holding’s fabless means they licence their intellectual property (IP) for the chip designs to companies such as Taiwan Semiconductor and Samsung to do the actual manufacturing. The company works with 7 out of the top 10 semi-conductor companies. The management made three acquisitions in 2022 one of them is an Israel-based company called Banias, securing a $300 million revenue commitment with a North American cloud provider.
YFS Intelligent Wealth Fund Performance
Technology is crucial in our lives and businesses today. Our portfolio companies are chosen based on their quality and agility to respond to a constantly changing world. If you look at some of the biggest companies in the world that were founded on the internet, many more will emerge in the future which will play an important role in our society. Historically, shares remain the best asset class for maintaining purchasing power and building wealth over the long term.
Awet Ghirmay, Head of Investment Research
More information about our fund, the YFS Intelligent Wealth Fund can be found here: Hargreaves Lansdown or AJ Bell
Risk warnings: The value of investments and the income derived from them may fall as well as rise. You may not get back what you invest. This communication is for general information only and is not intended to be individual advice. You are recommended to seek competent professional advice before taking any action. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. This blog is based on my own observations and opinions.
