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| Quarter | Letter Date | Fund Name | QTD | YTD | Tickers | Themes | Quick Take |
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Buyside Digest is not affiliated with, and does not endorse, CDT Capital Management. This analysis is provided for institutional research purposes only and is not investment advice.
"CDT implements first-ever defensive hedging against technology sector, viewing AI as an unsustainable bubble with OpenAI burning -$21B annually and Meta wasting $125-145B with no results. Semiconductors at 19.7% of S&P 500 face earnings bust when capital discipline returns."
CDT Capital Management is preparing for significant market turbulence for the first time in firm history, implementing enhanced hedging through put options on the technology sector (0.33% of assets) while maintaining cash reserves. The manager views AI as a bubble comparable to the Dot Com era, with infrastructure spending reaching $650-800B in 2026 but backed by unsustainable economics. OpenAI's leaked financials show -$21B operating losses on $13B revenue, while Meta is squandering $125-145B on AI with no verifiable results. Semiconductors now represent 19.7% of S&P 500 weightings and are expected to contribute 40% of index earnings growth, creating severe vulnerability when AI spending resets. The portfolio is deliberately AI-agnostic, with healthcare as the largest sector at 33% of assets, capitalizing on demographic tailwinds and valuations well below market. The fund returned +6.02% year-to-date through June 2026, outperforming during recent volatility while positioned defensively for expected turbulence ahead.
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