1. Portfolio Review​

In August, our net exposure increased and remained at a medium-to-high level. Our focus areas were unchanged: internet, semiconductors, cloud computing, consumer, and fintech. Within AI, we primarily invested in AI applications, cloud infrastructure, and leading chip manufacturers.

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2. Market Review and Outlook

Macro & Valuation: Growth slowing, but structural opportunities remain

Recent macro indicators suggest some slowdown. While market valuations are still not cheap, they remain within an acceptable range and do not preclude us from pursuing structural opportunities.
From a pricing perspective, despite rising expectations for a September rate cut, persistent inflation and an economy that continues to expand healthily kept the 10-year U.S. Treasury yield around 4.2% in August. As a result, the equity risk premium rose to roughly 3.7%—still low versus history but less extreme than before. Overall, pricing remains somewhat optimistic, but the balance between the risk-free rate and risk premium looks better than previously.
Going forward, we will continue to prioritize structural opportunities and seek more diversified sources of alpha.

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Still Positive on AI

Our overall thesis is unchanged from last month. New industry developments this month further validate our long-term view on AI:

• OpenAI:ARR rose from $10B in June to $13B in July (+30% m/m) and could exceed $20B by year-end. Both user scale and paid penetration increased; weekly active users grew from 500M to 700M—about 40% growth in the near term.

• Anthropic:Just completed a new funding round, with valuation surpassing $180B (more than 3× March’s $61.5B). Annualized revenue (ARR) has reached $5B (≈$4B in June; only $1B at last year-end), indicating accelerating expansion.

These developments support our view that AI adoption and monetization are advancing faster than during the internet era.

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Core thesis unchanged:

• Adoption and monetization outpace the internet era;

• Massive potential for leaders, with long-term revenue opportunity of 500–1,000 billion;

• Very high scale-economy barriers in foundation models (compute cost + rapid iteration);

• Limited cash-burn cycle and strong financing capacity.

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Where Are the Opportunities?

This year we will more proactively source varied alpha and explore new areas—AI, robotics, new consumer trends, fintech, and emerging markets:

• AI is a key medium- to long-term alpha source. As the value of human capital rises, AI that augments—or even substitutes—human work will see its value rise accordingly. We are only at the beginning, with a very high ceiling.

• Consumer: Lifestyle shifts toward health and self-care will continue to create consumer-sector opportunities.

• Fintech: Structural opportunities as fintech reshapes traditional financial services.

• Emerging markets: Attractive prospects in Latin America, APAC, and other regions.