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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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The Bristlemoon Global Fund 2024 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (The Bristlemoon Global Fund)

Primary Source Intelligence • Q3 2024 Letter Analysis

The Bristlemoon Global Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, The Bristlemoon Global Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+6.8%

Annualized-10.5%

Digest Analysis

Quick Take

"Chinese stimulus drove significant gains in undervalued Tencent, Alibaba, and Pinduoduo holdings. AppLovin's AI-powered ad platform showed sustained 75% software growth."

Executive Summary

Bristlemoon Global Fund returned 6.8% in Q3 2024, driven by concentrated positions in high-conviction stocks including Chinese internet companies and AppLovin. The fund benefited from Chinese government stimulus measures that drove significant multiple expansion in Tencent, Alibaba, and Pinduoduo holdings, which were purchased as exceptionally cheap, high-quality businesses. AppLovin, the fund's largest contributor, demonstrated sustained growth with its AI-powered AXON 2.0 ad targeting algorithm driving 75% software revenue growth. The manager emphasizes their multi-year investment horizon and focus on mispriced future earnings streams rather than short-term performance. Portfolio adjustments included adding to China exposure during stimulus announcements, shifting toward quality names like Pinduoduo, and subsequently trimming positions after the rally. The fund also tactically increased short positions during August volatility before covering them as markets stabilized. With 15 long positions and concentrated exposure, the strategy accepts volatility as the price of admission for attractive long-term returns from quality businesses that should compound earnings at healthy rates.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

78%

CautiousHigh

High Conviction (78%)

High conviction evidenced by concentrated portfolio of 15 long positions with largest holding at 8%. Manager provides detailed fundamental analysis of AppLovin with specific position sizing decisions and clear thesis. Explicit statements about sizing up positions and trimming based on conviction changes demonstrate strong belief in holdings.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager expresses cautious optimism about specific opportunities while acknowledging market risks. They see attractive valuations in Chinese stocks post-stimulus and growth potential in AppLovin, but warn of correction risks in Chinese equities and note structural economic challenges in China.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

The fund maintains concentrated long exposure at 108.1% with net exposure of 105.8%, indicating risk-on positioning. However, they tactically added shorts during volatility and trimmed China positions after gains, showing measured risk management rather than maximum aggression.

Capital Deployment

20%

De-riskingDeploying

De-risking (20%)

Moderate deployment activity with tactical additions to China exposure during stimulus and significant sizing up of AppLovin position from small to 8% holding. However, subsequent trimming of China positions and covering of shorts suggests more rotation than net deployment. No cash level changes reported.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

The manager shows selective deployment bias, having added to China exposure during stimulus and sized up AppLovin after earnings. They express confidence in multi-year prospects for holdings but emphasize patience and selectivity rather than aggressive near-term deployment.

Language Signal

35%

BearishBullish

Bearish (35%)

Language is balanced between opportunity and risk recognition. Positive terms include 'attractive,' 'phenomenal growth,' 'wonderful businesses,' and 'compound earnings,' while risk language includes 'correction risk,' 'structural issues,' and 'volatility.' Slightly more opportunity-focused overall.

Perceived Risk

55%

Low RiskElevated

Moderate Risk (55%)

Manager acknowledges multiple specific risks including Chinese equity correction potential, yen carry trade unwinding, and structural Chinese economic issues. Discusses volatility as 'price of admission' and warns about luck versus skill in short-term performance, showing moderate risk awareness.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

Manager sees selective opportunities in specific areas, particularly in AI-powered advertising technology and undervalued Chinese internet companies. Emphasizes finding 'mispriced future earnings streams' and 'easier opportunities' while ruling out complex businesses, suggesting moderate opportunity availability.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

Explicitly states multi-year investment horizon, seeking to 'underwrite investments over a multi-year time horizon' and assess 'earnings power of businesses three to five years in the future.' Emphasizes long-term compounding and encourages investors to 'adopt a long-term mindset' for staying power through volatility.