Stock-picking hedge funds recorded their best monthly performance since December 1999 in April. An industry index tracking these funds rose 6.5%. A tech-focused index surged 10.3%, marking its best month in 28 years.
Surging demand for semiconductors and data center infrastructure drove the gains. Tech giants expanded AI capabilities, boosting chipmakers and equipment providers.
Point72, Whale Rock Capital, and Seligman Investments posted their strongest returns in years. Hedge funds increased net exposure to the semiconductor sector to a ten-year high. AI supply chain companies accounted for nearly two-thirds of long-position profits in April.