Liontrust GF Global Alpha Long Short Fund on SK Hynix Inc.
Thesis
Liontrust increased its holding in SK Hynix Inc. as part of selective additions to high-conviction AI and platform-technology beneficiaries. The company provides memory exposure, particularly to the high-bandwidth memory bottleneck supported by hyperscaler AI investment. The broader investment case is that continued hyperscaler spending supports demand for computing, memory, cloud software and associated infrastructure. The manager increasingly prefers businesses with visible earnings, recurring revenue or credible AI monetisation rather than distant expectations alone.
“increasing positions in Microsoft, Alphabet, ServiceNow, Snowflake, EPAM, Sandisk and SK Hynix”
Key risks
- Slower growth in hyperscaler capital-expenditure guidance could undermine the AI earnings cycle.
- Shortening memory, optical or other bottleneck lead times could erode pricing power.
- Higher long-dated yields could compress valuations of long-duration growth shares.
- Tighter financing or weaker AI-application monetisation could disrupt the broader investment cycle.