April and Q1 earnings season are in full swing and many of our portfolio companies are reporting. In short, the numbers we see across the supply chain show that demand for AI continues to outpace supply. Most importantly, the numbers we saw across hyperscalers (Microsoft, Google, Meta and Amazon \u2013 all owned) were rock solid, with accelerating growth, improving profitability and an incremental increase in forward-looking backlogs. We believe the question of returns on AI investments is increasingly being answered in numbers. This gives us greater confidence that both the scale and duration of this investment cycle remain underestimated by the market \u2013 which is why we have such large positions in the AI semiconductor complex (from chip suppliers to memory, to semicap equipment). We also continue to see strong data points across the supply chain \u2013 with monthly numbers tracking to high levels, and many of our companies raising guidance given the strong demand they are seeing.<\/p>\n\n\n\n
Elsewhere, we saw strong revenue updates from both Anthropic and OpenAI, both of which have seen exponential increases in revenue, particularly since their December releases of Claude Code and Codex, respectively, which have driven a step change in real-world use cases that can be addressed with AI. Anthropic is now said to be tracking $1.4T40 billion in ARR, up from just $1.4T9 billion at the end of 2025. We also continue to see strong new model releases from various players, and we continue to believe that the laws of scaling \u2013 more, better chips driving better models \u2013 continue to remain intact. We fully expect that better models will continue to drive more use cases and thus demand, and we continue to expect that many of our semiconductor businesses will continue to see demand well in excess of supply, which in turn drives pricing, accelerating revenue and higher margins.<\/p>\n\n\n\n
On the short side, we remain cautious about exposure to smartphones and PCs, with component pricing impacting volumes; and around IT services and consulting, where we believe spending decisions are being delayed and squeezed out, given both macro and AI-related uncertainty.<\/p>\n\n\n\n
The fund rose 4.1% YTD in April and is up 5.7% YTD.<\/p>\n\n\n\n