Despite the absence of a year-end rally, our fund, Finserve Chelverton Global Technology Fund (formerly GP Bullhound Technology Fund), ended December up 3.25%, bringing the full-year return to 40.2%. This means the fund has delivered an average annual return of over 25% since its inception in 2019. In comparison, the NASDAQ ended the month flat, while the broader S&P 500 index declined by -2.37%.
Key data points during the month included strong November sales figures from TSMC and weaker-than-expected guidance from Micron. TSMC continues to show robust growth, primarily driven by AI demand, which we believe will persist through 2025. Micron’s report was in line with expectations, but the guidance for the next six months was weaker than anticipated. While the AI segment performed strongly, the smartphone and PC segments were notably weaker than expected and are likely to remain subdued over the next six months.
We believe the first half of 2025 will resemble 2024, with AI serving as the main growth driver for the technology sector, while other segments remain relatively weak. However, there is a possibility that the PC market could improve in the latter part of the year.