The latest 13F filing season just came by, and as we gain a glimpse of what some of our favorite hedge funds have been up to in the second quarter, investors might have a breadcrumb trail to follow as the bull market takes its next turn and the most volatile time of the year comes rolling along.
Given the robustness of the bull market and the landing of Space Exploration Technologies (NASDAQ:SPCX | SPCX Price Prediction), which actually saw quite a bit of activity among some of the big-name hedge funds last quarter, it’s been one of the most eventful summers for the market in a long time. As September hits, things could get even more interesting, especially as correction watchers look to brace themselves for a broad drawdown that I’m sure you’ve heard by now is starting to come overdue.
While I wouldn’t rush into SpaceX right here just because your favorite hedge fund initiated a small position, I would have a look at a tech-focused investor like Altimeter Capital’s Brad Gerstner to see what he’s been up to amid the ongoing AI revolution and whether or not he’s ready to pull back on his enthusiasm, specifically with regard to the AI revolution.
Brad Gerstner was quite busy last quarter
What makes Gerstner so interesting is that his specialty is tech, and he’s not afraid to embrace volatility to beef up the growthiness of his portfolio.
Unsurprisingly, a tech bull like Gerstner doesn’t see an AI bubble. And with buying activity in the second quarter, that suggests the man is treating recent volatility, specifically surrounding the semiconductor names, as more of a buying opportunity (more of a “healthy consolidation” than the beginning of the end that some bears have been calling for) than a sign to profit-take; Alitmeter may very well be one of the best-positioned to come rallying back in the second half plays out and nerves begin to calm.
So, where did Mr. Gerstner lean into in the latest quarter? The man was one of many who bought some SpaceX. Given the position comprises around 3% of the portfolio, it’s one of the biggest votes of confidence from a big-name investor.
Big bets on Cerebras, Micron and more
Of course, Gerstner didn’t just stop at SpaceX in what was a choppy quarter for tech. His fund also backed up the truck on Cerebras Systems (NASDAQ:CBRS), adding to Micron (NASDAQ:MU), and a handful of other semi stocks. To say he’s made the most of the choppiness in the semis would be a big understatement. Of course, it’ll be interesting to see what he’s been buying in the third quarter since things have only gotten more turbulent for the semis.
With Cerebras shares, the silicon innovator behind those dinner plate-shaped chips, tanking nearly 13% on Tuesday’s session, questions linger about what the future holds for the $52.3 billion firm, which could win big as an OpenAI partner.
In my view, Cerebras is one of the best AI chip diversifiers a semi portfolio could ask for as the agentic era hits and labs seek to chip away at inference latency and costs. When it comes to the up-and-coming AI chip play, this latest near-$2 billion bet isn’t Gernster’s first rodeo. When paired alongside Nvidia (NASDAQ:NVDA), I think it’s safe to say that Altimer has a potent one-two punch in chips that will be tough to match.
As for braving the dip in Micron, I think it’s a bold move. With DRAM/NAND demand swelling with little relief in sight, I’d say the move has a pretty good chance of paying off.
The bottom line
With a relatively concentrated portfolio and a modest (around 20) number of stocks alongside a long-term investment focus, Brad Gerstner and Alimeter Capital, I believe, stand out as one of the better tech funds to keep tabs on. With his venture background and willingness to bet big on his best ideas, I do view the man as well-equipped to score big in this AI bull run as it looks to extend.
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