When Ivana Delevska launched her fund in August 2021, she had a premonition that artificial intelligence would become huge. Delevska is a hedge fund veteran who has worked at Citadel, Millennium and Tiger Management, specializing in the industrial sector and communicating with the more than 100 companies for which she was responsible. By figuring out where companies were investing their money, she saw the AI boom coming. “We’re able to spot trends earlier than others… just because we talk to industrial companies that are investing in AI GPUs,” Delevska said in an interview, referring to graphics processing units. Delevska’s Spear Alpha ETF (SPRX) has $70 million in assets under management and holds about 26 stocks, and nearly all of the assets in her portfolio are expected to benefit from artificial intelligence in some way. “Without a doubt, artificial intelligence is clearly the biggest theme, it affects basically 95% of our portfolio,” she said. “As a result, almost everything we invest in now will benefit from artificial intelligence in some way. Nearly 11% of the SPRX 1Y mountain Spear Alpha ETF is Nvidia’s actively managed ETF up more than 60% over the past 12 years. Compare that to Next, Cathie Wood-led ARKK is up over 21%, and a big driver of Spear’s outperformance is Nvidia First stock as we enter 2023, so it’s really like a fall out of favor. A way to attack,” Delevska said. “It’s a high-risk investment, but it’s also a high-return investment. The Spear Alpha ETF is playing a more defensive role in her portfolio, with the exception of artificial intelligence, and its expected returns over the next few years. It’s 30% to 40%. It’s very similar to the long story of funds like Citadel, so that’s where you get the $1.36 billion in losses.
