Institutional ticker directory tracking stock mentions, long/short ideas, and high-conviction pitches extracted from quarterly hedge fund letters.
| Ticker | Company | Sector | Industry | Pitches | Stance |
|---|---|---|---|---|---|
| Fund / Manager | Thesis Excerpt | Stance | Period / Date | Action |
|---|---|---|---|---|
Voss Value Offshore Fund Travis Cocke | “We have initiated a small position in Rackspace Technology (RXT), a global managed service provider in both public and private cloud. RXT represents a classic high-leverage stub stock turnaround situation: a ~$900 million equity market cap ($3.42/share) resting atop a ~$3.8 billion enterprise value. The company carries ~$2.7 billion in net debt. We think majority owner Apollo's ~51% stake, with an estimated ~$8.50/share cost basis, keeps management firmly aligned with minority equity holders. As neoclouds like Nebius and CoreWeave garner attention as they scramble to build out new state-of-the-art data centers, Rackspace is in a unique position in that they already own or lease (long term, 15+ year contracts) a large data center footprint that has substantial unutilized capacity. In fact, you need only go back just a few years when their data center utilization was higher, and the company was generating over $800 million in run rate EBITDA, a number that will likely be under $300 million in 2026 due to high fixed costs. In our opinion, our confidence that they can move back much closer to that $800 million EBITDA level over the next 18-24 months is based on three factors: Whereas their Private Cloud business had been losing customers to Public Cloud, Sovereign AI has slowed and even reversed that trend as customers realize their data is a strategic asset that must be secured and strategically stored, especially in the industries Rackspace is known for serving (hospital systems, financial organizations, and governments). For the first time in years, they are guiding to growth in their Private Cloud business in 2026, something we expect to significantly accelerate in 2027. New management is going all in strategically on AI infrastructure and positioning Rackspace as the experts that will guide corporations on best practices in building (or rebuilding) their technological infrastructure in the age of AI. For instance, a strategic partnership with Palantir (who took a small stake in Rackspace recently) is a joint initiative whereby Rackspace and Palantir work in tandem to hand-hold customers in developing their AI strategy with Palantir providing their Foundry and AI Platform (AIP), with Rackspace providing the cloud backbone and jointly trained Forward Deployed Engineers (FDEs). The recent AMD agreement whereby Rackspace will deploy 30 Megawatts of compute with AMD chips is the real potential gamechanger. This gives Rackspace a strategic compute partner with access to the chips needed to add an AI inference layer to their service offerings. We estimate that once fully deployed, this opportunity can produce an incremental $500-600 million in revenue and $250-$400 million in EBITDA, with potential optionality to expand beyond the initial 30 Megawatt agreement. The stock has been hit recently as the company is aggressively repositioning around these budding opportunities. On the Private Cloud side, the company is trying to maximize the value of its existing data center capacity, which can involve some gaps in coverage as they shift lower margin customers out and move higher margin customers in. On the Public Cloud side, the company continues to shift away from low to negative value contracts on what are effectively resale agreement on AWS compute. This resulted in lowered 2026 revenue guidance and liquidity levels that do make us a bit uncomfortable in the near-term. However, the first clear tangible evidence of this turnaround also showed up in Q2 2026, as total Remaining Performance Obligations (RPO) exploded 40% sequentially to $809.1 million, driven by a surge in Long-Term RPO to $623.0 million (nearly doubling YoY). We would also note that Rackspace's bonds have traded up dramatically over the last few months from signaling distress to trading near par value. From the credit vantage point, we would argue the equity has materially underreacted. To be clear, RXT remains a high-wire act, and we have sized this position accordingly (~2%). Because of the high financial leverage, the equity behaves like a long-dated call option. If liquidity breaks or execution falters, it could face severe dilution (with an open ATM adding to Bear fodder), but if RXT successfully converts its massive idle data center capacity and surging RPOs into $500-800 million+ of run-rate EBITDA within two years, it is possible that a reasonable 10x multiple (compared to some peers at 25-30x) can lead to an $11-$15 stock with feasible blue-sky scenarios pushing to $20-$30+ (the price targets are estimates and are inherently uncertain). We also believe there is potential optionality, if needed, to reduce leverage by selling the Public Cloud business and becoming a Private Cloud managed services AI pureplay. While the exact sequence of events is still murky, our opinion is that high profile customers signings and announcements combined with funding details around the AMD chips build out could be the match that lights the virtuous cycle loop for Rackspace, lowering its cost of capital and allowing an amend and extend on its debt stack, thereby allowing Rackspace more maneuverability to expand relationships with AMD and other chip suppliers further while driving long term shareholder value.” | NEUTRAL | Q2 2026 Aug 27, 2026 | View Pitch |
Voss Value Fund Travis Cocke | “We have initiated a small position in Rackspace Technology (RXT), a global managed service provider in both public and private cloud. RXT represents a classic high-leverage stub stock turnaround situation: a ~$900 million equity market cap ($3.42/share) resting atop a ~$3.8 billion enterprise value. The company carries ~$2.7 billion in net debt. We think majority owner Apollo's ~51% stake, with an estimated ~$8.50/share cost basis, keeps management firmly aligned with minority equity holders. As neoclouds like Nebius and CoreWeave garner attention as they scramble to build out new state-of-the-art data centers, Rackspace is in a unique position in that they already own or lease (long term, 15+ year contracts) a large data center footprint that has substantial unutilized capacity. In fact, you need only go back just a few years when their data center utilization was higher, and the company was generating over $800 million in run rate EBITDA, a number that will likely be under $300 million in 2026 due to high fixed costs. In our opinion, our confidence that they can move back much closer to that $800 million EBITDA level over the next 18-24 months is based on three factors: Whereas their Private Cloud business had been losing customers to Public Cloud, Sovereign AI has slowed and even reversed that trend as customers realize their data is a strategic asset that must be secured and strategically stored, especially in the industries Rackspace is known for serving (hospital systems, financial organizations, and governments). For the first time in years, they are guiding to growth in their Private Cloud business in 2026, something we expect to significantly accelerate in 2027. New management is going all in strategically on AI infrastructure and positioning Rackspace as the experts that will guide corporations on best practices in building (or rebuilding) their technological infrastructure in the age of AI. The recent AMD agreement whereby Rackspace will deploy 30 Megawatts of compute with AMD chips is the real potential gamechanger. This gives Rackspace a strategic compute partner with access to the chips needed to add an AI inference layer to their service offerings. We estimate that once fully deployed, this opportunity can produce an incremental $500-600 million in revenue and $250-$400 million in EBITDA, with potential optionality to expand beyond the initial 30 Megawatt agreement. The first clear tangible evidence of this turnaround also showed up in Q2 2026, as total Remaining Performance Obligations (RPO) exploded 40% sequentially to $809.1 million, driven by a surge in Long-Term RPO to $623.0 million (nearly doubling YoY). To be clear, RXT remains a high-wire act, and we have sized this position accordingly (~2%). Because of the high financial leverage, the equity behaves like a long-dated call option. If liquidity breaks or execution falters, it could face severe dilution (with an open ATM adding to Bear fodder), but if RXT successfully converts its massive idle data center capacity and surging RPOs into $500-800 million+ of run-rate EBITDA within two years, it is possible that a reasonable 10x multiple (compared to some peers at 25-30x) can lead to an $11-$15 stock with feasible blue-sky scenarios pushing to $20-$30+.” | NEUTRAL | Q2 2026 Aug 26, 2026 | View Pitch |
Each excerpt above is the manager's commentary on this ticker specifically. The full letter has the rest of their portfolio thinking, risk discussion, and broader institutional context.
