It’s 13-F filing season, and there have been a lot of hedge fund moves to dig through for a hint of a clue as to where the value is, at least as of the end of the first quarter! Indeed, a lot has happened in the past seven weeks. And while we’ll only know what the smart money is up to right now in over two months or so from now, I still think it’s worth checking in on the snapshot to see how portfolios are comprised.
Of course, the major risk from following an investment manager into a stock that they may have bought in Q1 is that they’ve since sold it (or trimmed it) a quarter later. At the end of the day, be your own investor, and don’t lean too heavily on the 13-F filings!
In any case, one absolutely remarkable, but smaller and perhaps lesser-known fund stood out. In case you missed it, I’m referring to a fund known as Situational Awareness run by German former OpenAI researcher Leopold Aschenbrenner.
Situational Awareness is arguably one of the best AI funds on the planet
He’s been in the trenches of the AI boom, so he would know where to look for investments (and perhaps value where others see nothing more than an expensive hyper-growth stock). Indeed, it’s hard to find this kind of industry expertise, but I do think the moves the man makes could be a sign of where the AI revolution could be going. We’ve seen it shift gears viciously away from software, even AI software in the application layer, and towards hardware, most notably the semis.
Nvidia (NASDAQ:NVDA | NVDA Price Prediction) CEO Jensen Huang has been placing big bets on optical connectivity and other AI “plumbing” that’s needed for the ongoing AI data center buildout, and it’s these corners where the relative value might lie in AI. But even as things shift across energy and optical connectivity, investors must be ready for absolutely anything to happen in the near term.
In any case, back to Situational Awareness, which is a fund that’s seemingly going all-in on AI. Given Leopold’s expertise, I think the fund is an absolute must-watch for AI investors. Having a look at the Q1 portfolio snapshot, it’s evident that the energy and hardware side of AI plays a massive role. In any case, Situational Awareness is up big-time in recent years. Arguably, it’s one of the top performers in the past three years, but are the portfolio’s holdings still well-positioned for more of the same? That’s the big question.
Bloom Energy really did bloom for investors
In Q1, there was some profit-taking to be had, most notably from top holding Bloom Energy (NYSE:BE), which remains the top holding despite a double-digit percentage trimming. With the stock up 222% in six months or nearly 1,600% in the past year, I’d say trimming is a wise bet. After all, it looked like the holding was running away with the percentage allocation for a while. Even after a sizeable cut from the portfolio, Bloom Energy remains the number-one holding.
For those unfamiliar with Bloom Energy, it’s a maker of solid oxide fuel cells. In other words, these are portable generators that enable data centers to bring their own power with them. Given how stressed the grid has become and how hot a topic energy and the state of the grid have become, it should be no mystery as to why Bloom Energy has been rocketing higher.
The call for data centers to bring their energy power is getting louder. And until that changes, Bloom Energy is in a great spot, as it continues striking deals with big names in the data center space.
What next? Keep watch of the neoclouds
As Leopold takes profits in the name, though, a slew of other hedge funds were punching their ticket last quarter. I guess it all boils down to whether others are chasing, while Situational Awareness looks to trim. Time will tell. Either way, Situational Awareness got in early and has shown its AI know-how has been a massive advantage in investment.
Beyond Bloom Energy, the portfolio also has other profound winners in Sandisk (NASDAQ:SNDK), other energy plays, some neocloud firms, and other plays across the chip space. The big takeaway, in my view, is that the fund set its sights on neocloud plays in Q1, including the former Bitcoin miners who’ve transitioned.
Top Gaining Stocks
Top Losing Stocks