Taiwan Semiconductor Manufacturing Co (TSMC) , the world’s largest contract chipmaker, reported a 54% jump in quarterly profit , surpassing forecasts, thanks to soaring demand for AI-related chips . This robust performance underscores TSMC’s dominance in producing advanced chips for AI applications, with key customers like Apple and Nvidia . TSMC's net profit for 3Q2024 reached T$325.3 billion (US$10.11 billion) , exceeding the T$300.2 billion forecasted by analysts. The company's revenue rose 36% year-on-year to US$23.5 billion , driven by strong demand for smartphone and AI chips utilizing its cutting-edge 3nm and 5nm technologies . The AI boom has been a major growth driver, with AI processors expected to account for a mid-teens percentage of TSMC's overall revenue for 2024. TSMC's capital spending for the current quarter is set to more than double to US$11.5 billion , and it expects capital expenditure to increase further in 2025 as demand remains robust. Chai
Millennium Allocates Capital to Hong Kong’s Centerline Amid Growing Demand for Multi-Strategy Hedge Funds
Millennium Management LLC, one of the world’s largest multi-strategy hedge funds, has agreed to allocate capital to Centerline Investment Management Ltd., a Hong Kong-based hedge fund firm focused on the Chinese market. This move is part of Millennium's strategy to bolster returns by partnering with external hedge fund managers, according to people familiar with the matter.
Centerline, which was founded by Ben Xu in 2018, manages a Greater China market-neutral equity strategy that balances long and short positions, using alternative data to make bullish and bearish bets. Before the deal with Millennium, Centerline managed around $200 million in assets.
This partnership comes as multi-strategy hedge funds like Millennium, Balyasny Asset Management, and Point72 Asset Management seek to expand and improve performance by working with external managers. These collaborations have become a critical source of capital for fledgling hedge funds in Asia, particularly those focusing on China, where geopolitical tensions and economic slowdown have made it difficult to raise funds.
Centerline has posted a 7.5% annualized return since its inception, outperforming the MSCI China Index, which fell 2% during the same period. Despite occasional losses, such as a 10% decline in 2022, Centerline has shown resilience, especially compared to regional peers.
Millennium’s approach reflects a broader trend among multi-strategy hedge funds to diversify through external partnerships, as seen with other regional funds like Keystone Investors Pte and Blue Swell Asset Management. These collaborations help firms capture opportunities in Asia's fast-evolving markets, while leveraging their global capital base to support new and promising strategies.
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