Regal Partners Global Investments (ASX:RG1) delivered a resilient March quarter performance, driven by semiconductor stocks and gold, while its short book and currency hedging added strategic value amid market turbulence.
- Semiconductors and gold lead portfolio gains
- Short positions, including Pop Mart, boost returns
- Active repositioning with financials added, Glencore exited
- Full AUD currency hedging benefits amid a stronger Australian dollar
- Selective software exposure with a focus on hyperscalers
Semiconductors and Gold Drive Returns
Regal Partners Global Investments (ASX:RG1) steered through a turbulent March 2026 quarter with notable contributions from semiconductor heavyweights Samsung, SK Hynix, and TSMC. These Korean and Taiwanese players powered gains alongside gold exposures, which added resilience despite late-quarter price swings. The emphasis on semiconductors aligns with the sector’s ongoing relevance amid AI-driven capex considerations, though RG1 remains cautious about supply risks.
Short Book and Portfolio Rebalancing
Short positions emerged as a key source of alpha, particularly in March, with stocks like Pop Mart benefiting from a retreat in consumer enthusiasm. This tactical shorting on structural and thematic dislocations demonstrates RG1’s nimble approach in volatile markets. The portfolio also saw active repositioning: financials and gold were added, while the team exited Glencore, redeploying capital into high-conviction names such as Apollo and Uber. This dynamic reshuffling reflects a disciplined response to market dislocations.
The update builds on RG1’s recent strategic moves, including its dividend policy shift and capital management efforts, which were highlighted in the company’s earlier dividend focus update. This continuity underscores a broader theme of active portfolio stewardship.
Currency Hedging and Software Exposure
Currency strategy also played a pivotal role, with RG1 maintaining full hedging to the Australian dollar. This proved beneficial as the AUD strengthened over the quarter, cushioning returns from offshore exposures. Meanwhile, the fund kept software exposure low, selectively targeting opportunities after broad sell-offs. The team remains constructive on hyperscalers like Amazon but is monitoring risks associated with AI-driven capital expenditure and semiconductor supply constraints.
Overall, RG1’s update reveals a portfolio balancing growth potential in tech and financial sectors with risk mitigation via shorts and currency hedging, navigating a market environment marked by volatility and thematic shifts.
Bottom Line?
RG1’s active repositioning and hedging strategies highlight its adaptive approach, but the evolving AI and semiconductor landscape warrants close attention.
Questions in the middle?
- How will RG1 adjust semiconductor exposure amid uncertain AI capex trends?
- Will the short book continue to capitalize on fading consumer hype in coming quarters?
- How might currency fluctuations impact returns if the AUD reverses its recent strength?