Amid a surfeit of passive investing in the market, generating alpha, or excess returns above the benchmark, has become increasingly challenging for mutual funds and broad-based exchange-traded funds (ETFs).

According to investment experts, most strategies struggle, except for those with a keen eye on timely sector rotation. While broad tech exposure via the Magnificent 7 delivered solid gains, the real profit engine in the AI era has shifted decisively to the semiconductor sector.

Memory chip makers and semiconductor equipment providers such as Micron and others in the supply chain have generated enormous cash flows and profits. 

Nevertheless, the shift towards hardware dynamics explains why specialized indices like the PHLX Semiconductor Index (SOX) have dramatically outperformed broader benchmarks such as the S&P 500, Nasdaq, and Dow Jones. Broad mutual funds and ETFs heavily weighted towards mega-cap tech often missed this rotation, as few actively pivoted to pure-play hardware names.

Individual investors face even steeper hurdles in capturing these trends without direct stock picking or niche ETFs. Spotting the pivot from mega-cap tech to hardware requires deep sector insight that most retail portfolios lack.

Asia’s semiconductor stars shine

The shift has been particularly pronounced in Asia. Taiwan and South Korea delivered outsized returns, driven by their dominance in semiconductor.

Taiwan posted strong double-digit growth, fuelled by its critical role in the global chip supply chain. South Korea’s Kospi surged even more dramatically, with reports indicating that gains have approached or exceeded 75% in key periods, powered by leaders like Samsung Electronics and SK Hynix.

By comparison, mainland China and Hong Kong returned less than 30%, lagging significantly. In 2024-2025, these markets often struggled with deflationary pressure and property-sector woes, frequently posting flat or negative returns compared the the US and Taiwan.

While China also has a strong tech sector, the difference is that Korea and Taiwan are primary producers and suppliers of high-demand AI hardware with strong profit margins and cash flows.  Chinese tech names, often more consumer- or software-oriented, have not benefited to the same degree.

Investment implications

For portfolio managers, the message is clear: broad beta exposure is no longer enough.

Success hinges on identifying thematic rotations early, whether through direct stocks, targeted ETFs like those tracking semiconductors, or high-conviction sector bets.

South Korea, in particular, stands out as a potential star performer in the AI supply chain narrative.

Investors who recognized the pivot to AI enablers – rather than just AI users – are reaping substantial rewards, while many traditional strategies remain sidelined.

In a market increasingly driven by specific themes rather than broad tides, precision has become the ultimate alpha generator.

Fund Manager of the Year Awards 2026

It is in this context that we announce the winners of The Triple A Fund Managers and Investors Awards 2026.

For this year, The Asset board of editors has applied a stricter risk management standard for fund managers by limiting the best performing funds to those that have achieved a Sharp Ratio of 1 as well as an Information of 1 (at the same time) during the awards period.

ALTERNATIVES

David Lau

Peakwater Management

Peakwater Volatility Alpha Fund

Recognized as the Best Fund Manager for Option Strategies is David Lau, portfolio manager of the Peakwater Volatily Alpha Fund, of Peakwater Management. Peakwater employs a single core options strategy focused on trading short-dated volatility across multiple asset classes, including US-listed equities, indices, commodities, and treasury-linked instruments. Specializing in short-tenor opportunities, the approach combines high-turnover mean-reverting trades with a tail-risk exposure edge. This strategy has proven resilient, delivering over 20% absolute returns during the prior US equity drawdown, supported by a strong track record. Notably, it achieved an impressive Sharpe ratio of close to 6 last year.

John Stover

Tribeca Investment Partners

Tribeca Asia Credit Strategy

The Best Fund Manager for Credit and Fixed Income Hedge Fund is John Stover, who manages the Tribeca Asia Credit Strategy, of Tribeca Investment Partners.  Tribeca’s strategy focuses on investing in both investment-grade (IG) and high-yield bonds, targeting credit yields to maturity of 5-15%. The portfolio comprises bonds, loans, convertibles, and perpetual securities. In April 2025, a sell-off in Asian high-yield bonds and widening IG spreads created attractive buying windows, which the fund manager used to add high-conviction positions in BB, single-B, and IG names at discounted valuations.

Liao Tao

Southlake Fund Management

Baifu Southlake Fixed Income Fund SP

Also recognized as Best Fund Manager for Credit and Fixed Income Hedge Fund is Liao Tao, portfolio manager of Southlake Fund Management, who manages the Baifu Southlake Fixed Income Fund SP. Southlake is a Hong Kong-based, China-focused fixed income hedge fund specialist that invests primarily in the China credit market, with a particular emphasis on LGFV bonds. The fund employs a hold-to-maturity approach and maintains a short-duration strategy, mainly less than three years. It has delivered a strong risk-adjusted performance with a Sharpe ratio exceeding 4.

EQUITIES

Yu Sato

Amova Asset Management

Amova Japan Cash-Rich Equity Fund

Recognized as the Best Fund Manager, Equities – Japan is Yu Sato, portfolio manager of the Amova Japan Cash-Rich Equity Fund of Amova Asset Management. The strategy targets cash-rich Japanese companies with strong liquid reserves, seeking undervalued stocks that feature clear catalysts to avoid value traps. Research emphasizes net cash relative to market cap, efficient cash deployment, and upcoming corporate actions such as tender offers or buyouts. It employs quantitative screening using metrics like cash reserve ratio, EV/Ebitda, and P/E, while incorporating improving financial indicators, such as rising ROE and increasing dividends, to generate alpha.

Kenneth Tang

Amova Asset Management

Amova Singapore Equity Strategy

The winner of the Best Fund Manager, Equities – Singapore award is Kenneth Tang, portfolio manager of the Amova Singapore Equity Fund, of Amova Asset Management. The Singapore Small Mid Cap Strategy is a pure-play, mid- and small-cap fund targeting alpha from emerging opportunities in smaller companies. It focuses on what Kenneth calls the “New Singapore” sectors: technology, data, logistics, renewable energy, and new services.

Sishuo Liu

CICC Hong Kong Asset Management

CICC China A Share Quant Strategy Fund SP

Recognized as Best Fund Manager for Equities – Quant is Sishou Liu, portfolio manager of the CICC China A Share Quant Strategy Fund, of CICC Hong Kong Asset Management. The fund’s strategy relies on generating alpha from traditional factors such as value, quality, and momentum. This is increasingly enhanced with alternative and higher-frequency data for more timely signals. Key examples include market microstructure – analyzing Limit Order Book liquidity (buyer/seller depth at price levels) and price discovery speed via bid-ask spread movement – and order flow ("the Tape"), examining the actual stream of buy/sell orders rather than just price. Analyst-derived insights also contribute.

Chengshui Wan

Global Value Chain Investment Corporation Limited

Golden Eagle Global Trends Fund

The award for Best Fund Manager, Equities goes to Chengshui Wan, portfolio manager of the Golden Eagle Global Trends Fund of Global Value Chain Investment Corporation Limited. This investment strategy focuses on investing in high-quality technology companies with wide economic moats that benefit from long-term compounding. It targets “windows of opportunity” during disruptive innovations that reshape global supply chains, allowing companies to capture high-certainty growth before industry equilibrium sets in. Using comparative advantage, the strategy identifies leading enterprises across key global industries. The portfolio remains highly concentrated (six-eight stocks) to maximize returns, rejecting over-diversification and short-term trading in favour of patient, long-term holding of exceptional businesses.

FIXED INCOME

Jo-Ann Chia

Amova Asset Management

Amova Singapore Fixed Income Strategy

The Best Fixed Income Fund Manager – Singapore is Jo-Ann Chia, portfolio manager of the Amova Singapore Fixed Income Strategy, of Amova Asset Management. The Amova Singapore Fixed Income Strategy aims to generate total returns through capital appreciation and income by primarily investing in SGD-denominated fixed income securities issued by the Government of Singapore, statutory boards, and corporates. These include non-rated debt securities issued by Singapore-incorporated entities and statutory boards. The investment team targets 1.0% annualized outperformance with an expected tracking error of 1.5-2%.

Scott Roth

Barings

Barings Global High Yield Bond Fund

Grabbing the Best Fund Manager, Fixed Income plum is Scott Roth, portfolio manager of the Barings High Yield Bond Fund, of Barings. The fund has recently maintained its largest sector weights in less cyclical areas such as healthcare and telecommunications, which have been a key source of positive value-add. In contrast, the firm holds underweight positions in more cyclical and consumer-oriented sectors, along with tariff-sensitive areas including autos and retail, where downside risks remain elevated relative to the total return prospects.

Please click here for the full list of winners,

To learn more about these awards please go here.

To join the in-person annual celebratory dinner in Hong Kong on June 30, 2026, please contact us at celebrate@theasset.com.