Sydney-based hedge fund GCQ Funds Management has taken advantage of the recent tech selloff, purchasing around AUD200m ($143m) of beaten-down software stocks, betting the sector has hit its bottom, according to a report by Bloomberg.

Chief Investment Officer Doug Tynan said the fund sold some top-performing positions, including European luxury names, to redeploy into software companies, with recent buys including Microsoft Corp, Intuit Inc, and SAP SE.

The move comes after a wave of panic in the tech sector, triggered by updates from AI startups such as Anthropic PBC and a stark disruption scenario published by Citrini Research, which briefly roiled US software stocks. Tynan described the market reaction as extreme, saying, “That was the bottom — that’s my call.”

US software shares have since rebounded, with firms like Block Inc surging 25% in after-hours trading after announcing major workforce cuts tied to AI initiatives.

GCQ’s AUD2 billion fund has also been active in property portals, doubling down on Rightmove PLC, SMG Swiss Marketplace Group AG, and adding to its Hemnet Group AB position despite earlier declines.

Tynan said February is on pace to deliver record net inflows for the fund, reflecting investor confidence in the firm’s contrarian tech and property bets.