August: underlying demand remains good

The market continues to worry, will the recovery continue? How will the rapid spread of the delta variant affect and how fast will inflation fall? The positive market view has so far won this year with cyclical shares at the top. However, we are a little worried that the recovery may be delayed given the spread of delta-covid. Growth for technology shares has been strong this year, driven by investments around covid but also to streamline companies in this new environment.

The second quarter reports were generally strong and above all for the software companies.
The software companies have generally grown stronger than expected during Q2 despite tough comparative figures and indicated that they also believe that the second half of the year will be strong. We have expanded our positions in Salesforce and Adobe during the summer.

Video games have been by far the weakest technology sector during the summer, driven by political pressure in China and tough numbers to compare with from last year. However, underlying demand has remained good and the autumn looks set to be strongly driven by new releases. The large number of new releases will drive demand but also increase competition.

We have increased in software and in some gaming companies such as Zynga during the summer. GP Bullhound Global Technology Fund ended 1.8% in August and is now up 20,96% this year.

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