GCQ Funds Management Says Software Stock Sell-Off Has Bottomed Out, Deploys A$200 Million Into Tech
Sydney based hedge fund GCQ Funds Management has declared that the sharp global sell-off in software stocks has likely reached its bottom, even as volatility continues to grip the technology sector.The fund, which manages more than A$2 billion in assets, deployed A$200 million into technology stocks during the recent downturn. The buying was funded by trimming positions in some of its top-performing holdings, including shares of European luxury goods companies.
GCQ Targets Global Software Majors
According to Chief Investment Officer Doug Tynan, GCQ has been evaluating opportunities in leading global software names such as Microsoft, Intuit Inc., and SAP SE.The move comes after software stocks including Salesforce and Adobe experienced a steep decline in February. The sell-off followed the release of new tools by AI firm Anthropic, which triggered concerns about the long-term viability of traditional software business models.
Modest Rebound, But Bear Market Persists
Software stocks have staged a minor recovery this week. ETFs linked to software companies within the S&P 500 rose 2 percent overnight. However, the broader ETF remains deep in bear market territory, still down 30 percent from its peak.Tynan described the recent turbulence as highly unusual. Referring to a market reaction earlier in the week, he said one of the most surprising sessions he had witnessed involved a hypothetical scenario posted online that not only impacted markets but also drew comments from the White House. He added that, in his view, that episode marked the market bottom.
Fund Underperformance Amid Market Volatility
Despite its aggressive buying strategy, GCQ itself has faced challenges. One of its largest holdings, Hemnet Group AB, has fallen more than 70 percent from its 2025 peak.Even so, investor confidence in the fund appears intact. GCQ recorded an inflow of A$50 million last month and is on track to achieve its highest monthly inflow on record.
Tynan characterized the broader software stock correction as one of the most illogical market sell-offs he has seen, reinforcing his conviction that current levels present a compelling entry point for long-term investors.
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