#Dram How to view? Is the fund reducing positions stored?

The just-released holdings data left many people confused: the fund suddenly increased its holdings of “U.S. Treasury Bonds” and “Cash-like Assets” by over 30%.
Many are asking: Is the fund manager scared? Has the storage chip industry peaked?
1⃣ That 32% cash is not for hedging at all
First, look at the data:
• $SKHynix 27.32% (HBM absolute dominant)
• Government bonds/money market funds 32.44% (U.S. Treasury bills + First American Gov Obligations)
• $Samsung 13.94%
• $MU 28.17% (swap exposure + direct holdings)
At first glance, it seems like stocks and bonds are split roughly in half? Not really.
A quick explanation of “U.S. Treasury Securities 0%” in holdings: these are short-term Treasury bills (T-Bills), zero-coupon bonds. They don’t generate interest; they are issued at a discount and redeemed at face value at maturity.
Key point: In the fund’s portfolio, their main role isn’t as an investment asset, but as a “collateral for derivative contracts.”
2⃣ The truth: This isn’t a reduction in holdings, it’s leverage
The logic is simple:
• The fund buys some money into government bonds, pledging them to counterparties (like investment banks).
• The investment bank then “lends” the fund a stock exposure (e.g., Micron $MU), without the fund having to buy the stock outright with real cash.
• As a result, the fund amplifies its exposure to storage chips by more than double without increasing the full principal.
What’s the outcome?
The total exposure ratio in the holdings shows up as 115.72%.
Understand now? This isn’t “scared and buying bonds,” but using government bonds as collateral to add over 1.15x leverage, continuing to bet heavily on storage.
3⃣ What ambitions are hidden in the holding structure?
Peering through those complex swap contracts, the real attack formation is very clear:
• Micron (MU): ** Total exposure close to 28%, not only betting on storage cycle recovery but also on U.S. domestic AI storage manufacturing.
• ** SK Hynix: Over 27%, a firm bet that NVIDIA’s HBM remains tightly bound.
• $Samsung + $Kioxia: trailing behind, capturing the rebound in NAND and traditional DRAM, and industry cleanup.
The top seven holdings have a concentration of 97.14%. This isn’t a defensive portfolio; it’s a razor-sharp, highly penetrating offensive spear.
Conclusion:
Institutions are extremely optimistic about the storage sector. Every rebound clearly shows their firm hold!