AI, liquidity, private credit, small caps, software, technology, value
AI represents a massive technology shift with trillion-dollar capex budgets, but the manager questions whether the multi-trillion AI landgrab will have uncertain outcomes and be wasteful. While AI is an outstanding white-collar tool that will assist good companies, it won't quickly change government, healthcare, banking, or military sectors due to switching costs, training requirements, and regulatory constraints. Over 20% of private credit funds are loans to software companies, creating potential systemic risk as institutional LPs want their money back and GPs don't like the bids on what they need to sell. The pricing of illiquid assets in a market with no bids presents challenges similar to the S&L crisis or 2008 financial crisis. The software business is not dead, but many software stocks are facing repricing as growth gets picked off by AI changes and terminal values need to come down. The manager sees opportunities in slower growth, rule of 30 companies with strong margins and free cash flow that have been less appreciated but are now changing in valuation.
This report provides a detailed summary of investor holdings for a
specified stock ticker, highlighting key metrics such as fund
name, total assets under management (AUM), invested value,
portfolio weight, and shares owned. It also tracks changes in
share ownership during the last quarter, including the percentage
of shares bought or sold and the percentage of outstanding shares
owned. The data is generated using an API that processes investor
holdings and calculates these values for each fund. This report
helps investors and analysts monitor the stock positions of major
funds, identify investment trends, and assess the influence of
large investors on individual stocks.
