Valliance Long Short Master Fund · April 2026

April delivered a sharp rebound driven by memory, CPU and AI infrastructure.

The Main Fund Class B generated a +35.6% net return in April, bringing YTD net return to +72.6% and inception-to-date net return to +328.9%. The month’s gains were led by SanDisk, Intel, Kioxia, Nebius and Marvell on the long side, while index hedges were a deliberate drag.

01
Primary driverMemory positions rerated sharply as HBM tightness, enterprise SSD demand and disciplined NAND/DRAM supply translated into pricing power.
02
AI infrastructureNebius and neocloud exposure benefited from market recognition of contracted compute capacity amid persistent supply tightness.
03
Risk controlElevated index hedges detracted from performance but were maintained to control factor and macro/geopolitical risk.
Performance tableClass B net return

Return history

YearJanFebMarAprMayJunJulAugSepOctNovDecYTDITD
202639.2%6.2%(14.0%)35.6%————————72.6%328.9%
20253.6%(4.2%)(13.4%)1.7%0.5%14.2%26.6%18.2%2.2%14.4%(2.9%)(0.3%)69.7%148.5%
20245.4%0.1%(2.8%)(1.4%)6.8%9.2%(4.1%)3.8%19.2%(7.8%)(7.1%)14.6%37.5%46.4%
2023——————0.1%1.3%0.4%(3.5%)4.7%3.5%6.5%6.5%
Month2026202520242023
Jan39.2%(4.2%)5.4%—
Feb6.2%3.6%0.1%—
Mar(14.0%)(13.4%)(2.8%)—
Apr35.6%1.7%(1.4%)—
May—0.5%6.8%—
Jun—14.2%9.2%—
Jul—26.6%(4.1%)0.1%
Aug—18.2%3.8%1.3%
Sep—2.2%19.2%0.4%
Oct—14.4%(7.8%)(3.5%)
Nov—(2.9%)(7.1%)4.7%
Dec—(0.3%)14.6%3.5%
YTD72.6%69.7%37.5%6.5%
ITD328.9%148.5%46.4%6.5%
ExposureApr 30, 2026

High gross, controlled net

ExposureLongShortGrossNet
Total165%(140%)305%25%
US98%(106%)204%(8%)
Japan49%(24%)73%25%
South Korea18%(4%)22%14%
China0%(6%)6%(6%)

Attribution bridge

Top contributors and detractors are balanced in one visual block.

Top contributors

Long book drove the month

SanDisk · Long
+1,042 bp
Intel · Long
+1,004 bp
Kioxia · Long
+873 bp
Nebius · Long
+628 bp
Marvell · Long
+490 bp
Top detractors

Hedges reduced upside by design

US Index Hedges
(1,454) bp
Teradyne · Long
(184) bp
Celestica · Long
(154) bp
Korea Index Hedges
(91) bp
Shanghai Iluvatar CoreX · Long
(54) bp
Sector attribution

Semiconductors dominated both exposure and attribution

SectorLongShortGrossNetAttr.
Semi149%(53%)202%96%+5,031 bp
Internet16%(6%)22%10%+830 bp
Software0%(23%)23%(23%)(324) bp
Hedge0%(58%)58%(58%)(1,106) bp
Commentary

What changed in April

  • Memory was the standout driver as HBM tightness, enterprise SSD demand and disciplined supply behavior translated into pricing power.
  • Intel thesis began to play out as the market assigned value to AI-agent CPU demand, advanced packaging optionality and domestic foundry strategic importance.
  • Neoclouds benefited from market recognition of contracted compute capacity in a supply-constrained environment.
  • Gross exposure expanded materially from March month-end, while elevated index hedges were carried to control risk.

Outlook and positioning

2026 themes emphasized in the investor commentary.

Theme 01
Non-AI server componentsCPU, analog and passive components remain a focus as AI agents create broader server component demand.
Theme 02
Custom ASIC systemsContinued focus on upstream AI infrastructure beneficiaries beyond GPU-only exposure.
Theme 03
AI infrastructureNeoclouds and contracted compute capacity remain attractive, with power access, financing cost and GPU availability as key underwriting variables.
Theme 04
China data-center infrastructureChinese data-center infrastructure and domestic semiconductor production capex remain part of the 2026 theme set.
Theme 05
Risk managementThe Fund expects to maintain meaningful but selective gross exposure while actively managing factor, liquidity and concentration risk.
Theme 06
Macro hedgingGeopolitical conflicts remain a macro risk factor; hedges may remain a deliberate performance cost.

Investor letter

Performance commentary combined with factsheet data.

To investors

April 2026 performance contribution and commentary

Valliance Asset Management Limited

Dear Investors,

In April 2026, the Valliance Long Short Master Fund (Main Fund Class B) delivered a +35.6% net return. This brings its year-to-date net return to +72.6% and its inception-to-date net return to +328.9%, representing a +67.2% CAGR.

April’s performance was driven primarily by our long exposure to memory, CPU, and AI infrastructure.

Month-end exposure was 165% long / 140% short / 305% gross / 25% net, based on approximately US$199 million of main fund AUM as of April 30, 2026. Gross exposure expanded materially from March month-end.

Top positive contributors in April were SanDisk, Intel, Kioxia, Nebius, and Marvell, all on the long side.

As noted in our March letter, the Fund had already recovered March’s losses and generated additional gains in the early weeks of April. That momentum continued through the remainder of the month, as memory and AI infrastructure positions rerated sharply as further evidence of supply conditions tightening.

Outlook and positioning

Memory was the standout driver of April performance. The combination of HBM tightness, accelerating enterprise SSD demand, and disciplined supply behavior from the major NAND and DRAM producers has translated into the pricing power that we anticipated when we built our positions in SanDisk, Kioxia, and the broader memory complex.

Our long thesis on Intel and select U.S. semiconductor names is also beginning to play out. In Intel, the market is starting to assign value to a combination of significant demand for CPUs driven by AI agents, advanced packaging optionality, and the strategic importance of domestic advanced foundry capacity. We remain constructive, while continuing to monitor execution risk closely.

Neoclouds and AI infrastructure providers continued to perform well in April. Nebius was a meaningful contributor as the market increasingly recognized the value of contracted compute capacity in an environment of persistent supply tightness. We continue to view leading neocloud platforms as mispriced relative to the value of contracted capacity, while recognizing that power access, financing cost, and GPU availability remain the key underwriting variables.

We carried elevated index hedges through April given the magnitude of our gross exposure and the speed of the rally in our long book. These hedges detracted from performance, but they were a deliberate cost of maintaining the risk profile we wanted as geopolitical conflicts remain a macro risk factor.

Looking ahead, we remain focused on our 2026 themes: non-AI server components (CPU, analog, passive components), custom ASIC systems, AI infrastructure and Chinese data-center infrastructure and domestic semiconductor production capex. The opportunity set across the upstream AI infrastructure supply chain remains attractive, and we expect to maintain meaningful but selective gross exposure through the second quarter, while actively managing factor, liquidity, and concentration risk.

Best Regards,Investor Relations TeamValliance Asset Management Limited
Fund terms

Series B terms and providers

  • Management fee / performance fee: 2% / 20%
  • Subscription: monthly; redemption: quarterly with 45 days notice
  • Lock-up: 1-year soft lock; gate: 37.5% fund level
  • Administrator: Morgan Stanley Fund Services; Auditor: Ernst & Young
  • Prime brokers: Morgan Stanley and Goldman Sachs
Footnotes

Factsheet notes

  • Valliance Long Short Master Fund commenced on July 19, 2023.
  • Return table shows net return of Main Fund Class B.
  • Attributions represent gross trading revenue as a percentage of main fund AUM for the period.
  • Main fund AUM was approximately US$199m as of Apr 30, 2026; total strategy AUM approximately US$312m.
Source: Valliance Long Short Master Fund - Main Fund - April 2026 factsheet and investor commentary provided by the user.
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