FengHe Fund Management. $1.05B of US longs, 18 names, and a disclosed book that’s up 647% since mid-2023 — the S&P did 69% over the same window
Most people have never heard of this Singaporean fund. Here is the link to check them out
Four of its top ten — $MKSI, $TXN, $SIMO, $MOD — are the names to watch because our estimated Average prices are still
Just in the last year, those were their returns.
The last four quarters: +46%, +24%, +18%, +47%. Compounded: +212% in twelve months, against 21% for the S&P. Woah?
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Who are these people?
Founded 2009 in Singapore by Matt Hu and John Wu. A long/short equity fund plus a VC arm, and their stated hunting ground is technology supply chains.
Bloomberg profiled them in April: no pod-shop model, Hu keeps a close grip on trading decisions, analysts work in “monastic cells”.
They cashed out in Q1, then shoved back in
The reason they outperformed so well is that they were quietly cashing out in Q1 2026. Reported long value was cut 59% in one quarter, while the positions they kept were up 18%.
They sold really hard in the downturn.
Then in Q2. They closed 18 positions — Teradyne, ON Holding, Lumentum, L3Harris, ASML, Broadcom, Microsoft, gone — opened 5, and rebuilt the book to $1.05B with 91% in the top ten.
Poker translation: they pulled most of their chips off the table in the Q1 selloff, then pushed back in with 18 hands. Concentrated As F—-.
The book is mostly AI-plumbing ETF
$MKSI 24.5%, $TXN 16.3%, $CRDO 16.0%, $HWM 8.0%, $TSM 7.5%, $SIMO 5.7%, $MOD 4.7%. Chemistry and drills for AI boards, analog chips, SSD controllers, data-center chillers.
$NVDA is 0.6% of this book. $AMD is 1.6%. The weight sits one or two layers below the GPU — where the shortages are.
Pam “they’re the same picture” — FengHe’s top 10 vs the AI supply chain
This meme is akin to the situation.
A year ago the same book was Astera Labs 17.5%, AMD 13.3%, Marvell 8.6%. They sold the first-derivative AI names and rotated down the stack.
Okay now that we have unpacked their strategy and Prowess as an investor, here are the four names worth your time
$MKSI — the chemistry and the drill, 24.5% of the book
MKS is their biggest bet, first bought in Q1 and topped up 27% in Q2 at an average $223. Vacuum gear for etch tools, PCB drilling gear, and the chemistry for AI boards.
The Q2 call was loud. Semi segment growing over 50% year-over-year in Q3, depth etch running well above that, AI chemistry now 15–20% of chemistry revenue from 5% in 2024. Chemistry equipment used to top out at $200M a year; this year is “significantly higher”, with visibility through 2027 and a new Guangzhou factory committed.
Just look at the Acceleration in China and South Korea’s revenue
Punchline: whoever wins the GPU race, the board still needs holes and chemistry. I like the acceleration in revenue and operating leverage
Just look at the acceleration on this revenue streams of Photonics and Vaccuum division
Definitely a good buy under 200, but also interesting to start a position here for a medium to long term hold
The drag is that factory — 50 to 80 bps of gross margin per quarter for “the next couple at least”, charged straight to COGS
$TXN — the boring toll booth with empty clean rooms, 16.3%
A brand-new 16% position in Texas Instruments. Analog is the least sexy corner of AI, and that’s the point.
Haviv Ilan called demand “very strong and broad”, spreading from industrial and data center into automotive, and TI’s data-center business is “doubling more or less year-to-date”. Competitors are quoting 52-week lead times. TI has clean rooms already built and capacity “good for the next 3 years”.
Super-nerd stat: TI’s own lead times moved up “maybe a couple of weeks”. When the neighbour’s queue is a year long and yours barely moved, you take their customers.
$SIMO — the traffic cop inside every SSD, 5.7%
Silicon Motion makes the controllers that run NAND flash. It doesn’t own the NAND, and the NAND makers are busy: they “increasingly rely on third-party controller while focusing their own resources on DRAM HBM solutions”. That’s the trade.
NAND is scarce and management expects it to stay scarce until 2028 when new fabs land. Meanwhile the enterprise mix exploded: Ferri and Boot Drive went from 4% of revenue to “near 30%” in a year. MonTitan enterprise SSDs are in production with 2 tier-1 customers, 5 more ramp in H2, and a 4nm PCIe Gen 6 controller tapes out in August with design wins at flash makers and cloud providers.
2026 revenue guided up more than 100%. Q3 guide $519–541M, operating margin 27.5–28.5%, gross margin already beating guidance at 50.2%. Naice. Stock is up 223% year-to-date and FengHe still opened it at $219.
$MOD — the AC guy for GPU racks, and the one they’re underwater on, 4.7%
Modine builds chillers and cooling for data centers. Data-center revenue grew 90% year-over-year, an 80%+ CAGR over three years, third straight quarter of record orders, and a long-term agreement with a large hyperscaler running out to 2029.
FengHe tripled the position in Q2 (+197%) at an average $215. Stock is $180 now — the only one of the four below their cost.
Why? Parts shortages cost the new sites downtime and margin, the head of the data-center business resigned “for unexpected personal reasons”, and the CEO is running it himself while the Gentherm spin-merger closes by year-end. Three real problems. But management says the shortages don’t touch the long-term agreements or this year’s targets.
CONCLUSION
Here is the fund link to check them out
FENG HE
Bull case:
$MKSI: semi segment +50% YoY in Q3, visibility through 2027, biggest position of a book that did 3x in a year.
$TXN: competitors at 52-week lead times, TI with 3 years of built capacity — share gains without capex.
$SIMO: revenue doubling in 2026, NAND scarcity to 2028, 7 tier-1 enterprise SSD customers by year-end.
$MOD: 80%+ data-center CAGR, three record order quarters, a hyperscaler deal to 2029, 16% below FengHe’s cost.
Bear case:
$MKSI: 50–80 bps of gross margin a quarter burned on Guangzhou for at least two more quarters.
$TXN: $233B and already up 76% this year; the share gains reverse when competitors’ fabs catch up.
$SIMO: up 223% YTD; NAND supply normalizing early kills the mix story.
$MOD: no permanent data-center boss, plants running below plan, a spin-merger to digest.
Risks:
13F lag. These positions were filed 38 days after quarter-end and are 65 days old as I write. FengHe closed 18 of 31 names last quarter.
Concentration cuts both ways. A 24.5% position means one bad MKSI print moves the whole book.
All four are AI-capex derivatives. If hyperscaler capex guides down, they fall together.
I am not invested in $MKSI, $TXN, $SIMO and $MOD, but I do keep them on my watchlist in case there is carnage in the markets