Out of China, Into the Tools: Fifteen Lines in the Ledger
The five model books logged fifteen entries between Monday's open and Friday's close, and fourteen of them point the same way. Global Tech 50 sold its three China names and bought the chip-equipment complex. AI Build-Out sold its one European chipmaker and bought the same complex. The derivatives book sold three new puts, one of them struck at the money on a software name that had just fallen 9 percent. After the Saturday of one line, this was the Saturday of the rotation.
The China exit first, because it is the money that funded the rest. On Friday Global Tech 50 closed Alibaba, PDD and Prosus, the Tencent proxy, in full: 150.92 Alibaba shares carried at an average of 145.71 and sold around Friday's 113.24, 55 PDD shares carried at 133.98 and sold around 82.21, and 1,262.86 Prosus ADRs carried at 9.33 and sold around 8.65. Roughly 8,600 dollars of realised loss on 41,100 dollars of cost, about 21 percent, the bulk of it Alibaba and PDD. The three lines had been red for months and the book had been carrying them as its China exposure; on the week Korea and Taiwan led the world and the CSI 300 fell, that exposure moved.
Where it went: into the machines that make the chips rather than the chips themselves. ASM International went from 10 to 30 ADRs, Disco from 251 to 391, BESI from 75 to 100, ARM from 35 to 50, and SK hynix came in new at 100 ADRs, the book's first position in the memory maker that was already in the derivatives book as a short put. At Friday's closes those five lines are worth in the region of 50,000 dollars, against the 34,000 that came out of China, so the book put its small cash line to work as well. Every one of the five names is a Rubin Build-Out constituent, and Rubin's equal-weight index rose 2.5 percent on Friday alone.
The five model books logged fifteen entries between Monday's open and Friday's close, and fourteen of them point the same way. Global Tech 50 sold its three China names and bought the chip-equipment complex. AI Build-Out sold its one European chipmaker and bought the same complex. The derivatives book sold three new puts, one of them struck at the money on a software name that had just fallen 9 percent. After the Saturday of one line, this was the Saturday of the rotation.