This Fast-Rising Fund Has Been Crushing the Market — Nvidia, Micron and TSMC are Reasons Why

Watching what the hedge funds and top investment managers do in any given quarter can be a great source of ideas in just about any market. Instead of keeping tabs on just the big names, though, I think it’s also worth tracking down the hedge funds that have been making the timeliest moves with surgical precision.

After an explosive start to the year in the semi trade, the big question, I think, is which big-name investors and funds punched their ticket ahead of time?

Of course, there’s no guarantee that a well-timed move in a past quarter or past year can be replicated moving forward. But, either way, I do think some of the more underrated smart money funds that have a track record of making such moves might have what it takes to keep spotting value before the rest of the herd catches on. 

Picking the winners is one thing; having conviction is another

In any case, this piece will explore a Hong Kong-based investment fund in Prime Capital Management, run by Liu Yijun, that has been performing extraordinarily well in the past year, thanks in part to concentrated bets in a number of stocks that are among the market’s biggest gainers. What’s even more impressive than the medium- and long-term performance is the concentration and conviction in the small number of massive winners that have helped power the fund’s rise. 

Instead of diversifying into more than 20 or 30 names while running the risk of achieving a return that’s closer to that of an S&P 500 index fund, Yijun has opted to put more money into a few names, some of which have been absolute home runs. 

A fund that held this many big winners is worth watching closely

At the core of the portfolio are names like Nvidia (NASDAQ:NVDA | NVDA Price Prediction), Taiwan Semiconductor (NYSE:TSM), Micron (NASDAQ:MU), and Tesla (NASDAQ:TSLA). These top four holdings comprise most of the portfolio and are up big in recent months. The memory chip standout was actually a new buy for the fund as of the last quarter. When you consider the 82% gain in Micron in just the past three months, the timing becomes even more impressive.

Now, it’s easy to look back and tell yourself you would have bought Micron at the start of the year, but, back then, shares looked quite expensive, and the semiconductor and AI trade wasn’t nearly as hot as they are today. In short, it was hard to be a buyer back then, especially when you consider the volatility in the shares before the latest 2026 spike higher.

Keeping up with the smart money

While it’s probably too late in the game to follow a smart money manager as we pass the midpoint of the second quarter of 2026, I still think that as the 13-F filings of big funds come out, it’s worth seeing which firms got the timing right and what they’ve been hanging onto for the long haul.

Sure, 13-F filings might be a bit stale by the time they’re released to the public, but, when it comes to longer-term positions that have been held for several quarters or even some number of years, I do think there are intriguing ideas as to where the market opportunities might still lie.

Personally, I think Tesla, Prime Capital’s largest position, is a standout conviction holding, given the sizeable weighting and the potentially explosive growth profile to be had as the firm looks to robotics (Optimus), FSD, the rise of the Terafab, and other growth levers the market might still be missing for the seemingly high multiple today. Given the modest 20% gain in the past year, perhaps Tesla stock is the Mag Seven name to keep on the radar.