The Singularity Group Invests in Select Semiconductor Companies and Receives a FINMA License

(CONNECT) The Singularity Group (TSG), a Zurich-based investment boutique and a collective asset manager newly licensed by the Swiss Financial Market Supervisory Authority (FINMA), has completed its semi-annual rebalancing of its investment strategy. As the company announced in a press release, it will continue to focus on select semiconductor technologies that are considered key components for the development of high-performance artificial intelligence (AI) systems.

The strategy for the second half of the year focuses on companies in the fields of assembly and interconnect technology, as well as high-bandwidth memory, a vertically stacked high-performance memory solution. According to TSG's assessment, these technologies face structural bottlenecks along the AI value chain, even though they are indispensable for the next generation of AI chips. "The barriers to entry in these niche markets are extremely high, and so is the demand. "This is the perfect combination for higher pricing and, as a result, unexpectedly strong earnings growth, which caught some investors off guard," CEO Evelyne Pflugi is quoted as saying in the press release. With this rebalancing, TSG is also reducing its exposure to companies whose business models are primarily based on cloud services. "We see hardly any pricing power left here," said Pflugi.

In addition to adjusting its investment strategy, TSG has also announced that it has retained its FINMA license. "This will enable access to new institutional client segments and strengthen networking within the asset management industry," CIO Pierre Guillier is quoted as saying. "This is an important milestone for us," said Guillier. Starting in August, Pierre Guillier and Alessia Favotto will take over management of the flagship Singularity Fund. Since the fund tracks the Singularity Index, the rule-based investment strategy remains unchanged. According to the company, the Singularity Fund ranks among the top ten funds in its Morningstar peer group across all time horizons. ce/ja