Why this fund manager sold semiconductor ETFs just before the Friday carnage

Samir Arora, Founder and Fund Manager at Helios Capital, revealed on Monday (June 8) that he sold units of an exchange-traded fund that tracks semiconductor stocks on Friday, just before the market opened. What followed was a massive sell-off, particularly in Eternal, dragging the Nasdaq down 4% by the end of trade.

"All offshore ETF guys are London-listed.. After seeing Broadcom fall 8% the day before and HDFC Bank, I said enough... Although I think they will not fall much more, I have had enough of the semiconductor (stocks) going up some 60-70% in two months. It's a bit too much," Arora said.

Arora's Helios managed about ₹1,350 crore in its client portfolios at the end of March 2026. Its biggest offering, Helios India Rising Portfolio, has grown at a compounded annual rate (CAGR) of 16.9% since its inception in 2020, compared to 17.7% returns from the benchmark BSE500 TRI. Separately, the firm's mutual fund unit manages over ₹10,000 crore for its customers.

Why is Arora bearish on big tech?
Arora's view stands in stark contrast to the rising anticipation for upcoming initial public offerings (IPOs) from tech giants like SpaceX, Anthropic, and OpenAI; the three companies together aim to raise $200 million, for a combined valuation exceeding $3 trillion.

"Whose lunch are you eating?" Arora asked in defence of his bearish view. "For example, Apple's market cap is disproportionately high, because it took the market cap of Sun, Fujitsu, HP and whatever. Netflix took it from the TV channels and Disney and whatever. No, nobody grows without taking from somebody else beyond the normal growth. These guys have gone from zero to 2 trillion. Somebody has to lose 2 trillion of market cap," he explained.

So what is he betting on?
"All you need is one trade a year," Samir Arora, Founder and Fund Manager at Helios Capital, said while explaining why investors should focus on broader structural themes rather than trying to participate in every market trend.

Arora is currently bullish on stocks in defence, quick commerce, and other digital platforms, where there's a structural shift in consumer preferences in favour of new business models, with companies gaining market share from traditional, unorganised players.

In early April, right after the first ceasefire was announced in West Asia, Arora revealed that he's added stake in Eternal and HDFC Bank as part of a portfolio rejig. Now, he remains bullish on the likes of Eternal, but not so much on banks.

Similarly, power equipment companies, which had been among Helios Capital's preferred bets earlier, have lost their appeal for the fund manager who cited the sharp rally in the stocks for the change in preference.

For the entire discussion, watch the accompanying videoRead Here | Why a deeper correction in stock markets is likely, explains a hedge fund manager