Browse the world's most comprehensive database of hedge fund investor letters, sorted by recent quarter. Access primary source research from leading institutional managers.
Browse the world's most comprehensive archive of hedge fund manager letters. Access primary source research from leading institutional managers, sorted by reporting period.
Fund underperformed in Q2 as extreme market concentration favored narrow AI capex trade, but manager maintains five-year conviction. Portfolio declines driven by valuation compression, not earnings deterioration, creating coiled spring as intrinsic value rises while prices fall. Trimmed appreciated semiconductor positions, added to beaten-down compounders. Owns indispensable AI picks-and-shovels plus de-rated growth franchises positioned for leadership broadening. Current compression creates attractive entry point.
Full Quick Take
Fund underperformed in Q2 as extreme market concentration favored narrow AI capex trade, but manager maintains five-year conviction. Portfolio declines driven by valuation compression, not earnings deterioration, creating coiled spring as intrinsic value rises while prices fall. Trimmed appreciated semiconductor positions, added to beaten-down compounders. Owns indispensable AI picks-and-shovels plus de-rated growth franchises positioned for leadership broadening. Current compression creates attractive entry point.
Q2 2026 saw extreme market concentration in AI infrastructure stocks drive 12.18% fund return versus 14.93% benchmark. Portfolio suffered multiple compression despite intact earnings growth across software, healthcare, and China holdings. Manager trimmed winners TSMC and ASML, added to de-rated compounders Adyen and Constellation. Views valuation reset as coiled spring for future returns over five-year horizon given rising intrinsic value.
Full Quick Take
Q2 2026 saw extreme market concentration in AI infrastructure stocks drive 12.18% fund return versus 14.93% benchmark. Portfolio suffered multiple compression despite intact earnings growth across software, healthcare, and China holdings. Manager trimmed winners TSMC and ASML, added to de-rated compounders Adyen and Constellation. Views valuation reset as coiled spring for future returns over five-year horizon given rising intrinsic value.
