WHG Global Long Bias Fund commnentary for the month ended October 31, 2025.
Performance
- October: +5.7%
- YTD: +51.5%
- ITD: +131.5%
Monthly Commentary
Equity markets rallied in October, led by large-cap US tech and AI-related names, while small caps and cyclicals lagged. Q3 earnings season broadly exceeded expectations, with roughly 80% of companies posting EPS beats. Following September’s pullback, investors rotated back into growth, supported by a more stable rates backdrop, signs of cooling inflation, and a balanced tone from the FOMC.
Positive Highlights:
- SoftBank: AI momentum remained strong, with all hyperscalers reporting solid results and raising their capex spend expectations — quarterly investments are now expected to more than double between 1Q25 and 4Q26. In this context, OpenAI completed a $6.6bn secondary round, confirming a $500bn valuation, and finalized its for-profit restructuring, allowing SoftBank to complete the previously announced stake acquisition.
- SK Hynix: Spot DRAM prices rose more than 100% compared to September. On its earnings call, SK Hynix highlighted that all 2026 production is already sold out, with customers negotiating supply contracts for 2027. With AI-related memory demand accelerating, the company indicated that HBM margins are expected to remain stable throughout 2026.
- Argentina: The Argentine market reacted positively after Javier Milei’s party won more than 40% of the votes in the midterm elections, with its allies securing at least one-third of the seats in both chambers. The result provides the government with sufficient legislative support to defend vetoes and advance its market-friendly reform agenda, reducing political risk.
- Google: The company reported 16% revenue growth, the highest since 1Q22. Management expressed strong optimism in the Cloud division, highlighting that more contracts above $1bn were signed in the quarter than in the previous two years combined. In AI, Google increased its capex and expects to remain supply constrained through 2026. Anthropic also announced a landmark agreement to access 1 million Google TPUs, further consolidating Google Cloud as one of the leading players in AI.
- AI Energy: Despite October’s volatility, the group of bitcoin miners benefited from consistent operational execution and the growing demand for energy capacity linked to AI and high-performance computing (HPC). Portfolio positions were supported by higher production, capacity expansion, and the conversion of one site to AI/HPC. Recent research reports also highlighted these companies as “energy supply winners” in the US, amid the rapid expansion of infrastructure required to support AI.
Negative Highlights:
Portfolio Hedges: In a month of broadly positive market returns, we saw losses across the indices used as hedges.
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