October: weak month for tech weighted results

Thyra Hedge Fund lost 0.9 percent during October, which was better than the Nasdaq Composite Index, which retreated 2.4 percent during the period. Since the beginning of the year, the increase adds up to 3.9 percent. The month was turbulent on the stock market where risk appetite decreased noticeably towards the end of the month, which translated into a broad fall for technology-related companies. This despite the fact that the reports that were presented were generally better than expected. Of the S&P companies that had reported at the end of the month, 88 percent had beaten expectations.

In particular, we've seen big fights between Work From Home (WFH) stocks and stocks benefiting from a recovery in the economy over the past few weeks and this has continued into November. Our gaming stocks have the largest exposure to WFH, while semiconductor equipment companies have the largest exposure to the recovery.

The fund's holdings were dominated by positions in Activision, ASML, Zynga, Ubisoft and Microsoft. Among the winners were Sony, KLA, Tencor, TSMC, Servicenow and LAM Research.

At the end of the month, the net exposure in the fund was 16 percent, of which beta-adjusted around 0 percent. During the month, the fund increased the position in Zynga and initiated a position in Paradox Interactive.

Going forward, it will continue to be about how much WFH exposure the portfolio should have relative to recovery stocks. The companies we own continue to deliver in both scenarios, we believe.