Hong Kong’s Hermitage Capital stays devoted to top-tier tech stocks amid jitters

Despite geopolitical tensions and market fluctuations, Hong Kong-based Hermitage Capital remains committed to investing in leading technology companies worldwide. With a $1.5 billion fund, 80% in US dollars and the rest in renminbi, the private equity firm is increasing investments in artificial intelligence, semiconductors, and robotics, primarily in the US and China. Hermitage CEO Sean Xiang Yuqiu emphasized the importance of maintaining a strong focus on top-tier technology companies even when market sentiment is low.

Since launching a three-year plan in 2022 to invest $500 million in AI and robotics globally, Hermitage has already committed over $200 million. The firm has invested in companies like Airwallex, Horizon Robotics, and MetaX Integrated Circuits. Founded in 2017, Hermitage has a diverse portfolio of over 30 companies, with an equal split between China and overseas markets, primarily the US.

Hermitage's strategy has evolved to focus on physical AI rather than foundation models, as Chinese humanoid robotics equities have faced a significant decline. The firm has selectively exited earlier bets and is now concentrating on high-potential areas like robotics, self-improving AI, and enabling hardware. Hermitage measures portfolio bets using a "worry-to-return ratio," aiming to own businesses with the lowest worry per unit of return.