The market remains anxious, will the recovery continue? How will the rapid spread of the delta variant affect and how quickly will inflation fall? The positive market view has so far won this year with cyclical stocks at the top. However, we are a little concerned that the recovery may be delayed given the spread of delta-covid. Growth for technology stocks has been strong this year driven by investments around covid but also to make companies more efficient in this new environment.
The second quarter's reports were generally strong and above all for the software companies.
The software companies have generally grown stronger than expected during Q2 despite tough comparative figures and indicated that they also believe that the second half of the year will be strong. We have expanded our positions in Salesforce and Adobe during the summer.
Video games have been by far the weakest tech sector over the summer, driven by political pressure in China and tough numbers to compare to last year. However, the underlying demand has remained good and the autumn looks set to be strong driven by new releases. The large number of new releases will drive demand but also increase competition.
We have increased in software and in certain gaming companies such as Zynga during the summer. GP Bullhound Global Technology Fund closed up 1.8% during August and is now up 20.96% this year.