Nvidia Bet Fuels Spear Alpha: ETF Soars 60%, Surpasses ARKK

Spear Alpha ETF (SPRX), managed by Ivana Delevska, has reported significant growth. In the past 12 months, the fund’s value increased by more than 60%. This performance surpasses that of the well-known Ark Innovation ETF (ARKK), which rose by just over 21%. Spear Alpha, with $70 million in assets under management, benefits from strategic investments in artificial intelligence.

The fund holds approximately 26 investments. Almost every asset in the portfolio could gain from advancements in AI technology. This integration of AI technologies plays a critical role in the fund’s recent success. Nvidia, a major player in the chip industry, is a significant investment, accounting for about 11% of the fund’s total assets.

Spear Alpha ETF High-Risk Strategy Pays Off

Delevska first invested in Nvidia in 2023, when the stock was not performing well. This move proved advantageous, as Nvidia’s value has since increased by over 220%. The investment in Nvidia, now the largest in Spear Alpha ETF’s portfolio, exemplifies Delevska’s high-risk, high-return strategy.

This strategy not only contributed to Spear’s outperformance but also positioned the fund for future stability. Delevska anticipates a 30% to 40% return on Nvidia over the next few years. This suggests a shift towards a more defensive role for Nvidia within the portfolio.

The fund’s overall strategy does not focus solely on thematic investments. Instead, it draws themes from the diverse industries of the companies it invests in. This includes sectors like enterprise digitalization, space exploration, and decarbonization.

Ark ETF sees $1.36B in outflows, and SPRX

Spear Alpha ETF’s SPRX has attracted considerable attention and investment in 2024. It has garnered $54 million in inflows, according to the data available. This contrasts sharply with Ark Innovation ETF’s performance saw $1.36 billion in outflows this year. Investors seem increasingly drawn to Spear’s robust AI-focused strategy.

The fund’s approach mirrors Delevska’s experience in managing long books at major hedge funds like Citadel. By selecting individual stocks based on their potential AI integration, Spear aims to continue deriving substantial returns.

With AI technology influencing nearly 95% of its portfolio, Spear Alpha ETF is poised to capitalize on ongoing advancements in AI. This positions the fund well for sustained growth in a rapidly evolving investment landscape.

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