As technology continues to advance at an unprecedented rate, the world of investment is also evolving rapidly. One such investor who saw the potential of artificial intelligence early on is Ivana Delevska, a hedge fund veteran with experience at top firms such as Citadel, Millennium, and Tiger Management. When she launched her fund in August 2021, she had a strong belief in the power of AI and how it would shape the future of the industrial sector.
Delevska’s keen insights into the industrial sector allowed her to spot the AI boom much earlier than others in the industry. By closely communicating with over 100 companies she covers, Delevska was able to identify where companies were investing their resources, particularly in GPUs for AI. This foresight enabled her to position her fund, Spear Alpha ETF (SPRX), with $70 million in assets under management, to benefit greatly from the rise of AI.
With approximately 26 holdings in her portfolio, Delevska’s investment strategy heavily emphasizes companies that are expected to benefit from AI in some capacity. The success of SPRX can be seen in its impressive performance, with the actively managed ETF achieving over 60% growth in the past 12 months, outpacing more well-known funds such as the Ark Innovation ETF.
One of the key drivers of Spear’s outperformance is its significant investment in Nvidia, with the chip giant comprising almost 11% of the fund’s holdings. Despite the initial high risk associated with Nvidia, their stellar performance over the past year has solidified their place as a crucial defensive player in Delevska’s portfolio, with expectations of a 30% to 40% return over the next few years.
While AI remains the cornerstone of Spear Alpha ETF’s investment thesis, Delevska also focuses on other emerging themes such as enterprise digitalization, space exploration, and decarbonization. However, she emphasizes that Spear does not take a thematic approach but rather derives its themes from the companies it covers, similar to the approach taken at top-tier funds like Citadel.
Despite the success of Spear Alpha ETF, Delevska remains attentive to the ever-changing market dynamics. The fund has seen significant inflows, with $54 million in 2024 according to FactSet, showcasing investor confidence in Delevska’s investment acumen. In comparison, Cathie Wood’s ARKK has experienced outflows as investors grew displeased with its performance.
Ivana Delevska’s journey from a hedge fund veteran to launching her own successful fund underscores the importance of staying ahead of trends in the fast-paced world of investment. By recognizing the potential of artificial intelligence early on and strategically positioning her fund to capitalize on this trend, Delevska has proven her ability to navigate the complexities of the market with precision and foresight. As technology continues to reshape industries, investors like Delevska serve as a reminder of the power of innovation and adaptability in achieving investment success.