Hedge Fund News, Information and Data, Hedge Fund Alpha

Hedge Fund Alpha

Hedge Fund News, Information and Data

We focus on hedge funds with a bias towards emerging managers, specifically fundamental long-short managers. We are known for a lot of insights and exclusives on hedge fund letters, coverage of industry conferences, and interviews with investors and interesting service providers.

Thematic (Sector/Industry)

<ul><li>Hedge funds kept artificial intelligence at the center of their portfolios in August, but the question changed.</li><li>Instead of asking whether AI can generate revenue, managers increasingly focused on who will finance the infrastructure buildout and whether the cash flows will cover the debt behind it.</li><li>That shift showed up in the breadth of ownership.</li></ul>

Hedge funds kept artificial intelligence at the center of their portfolios in August, but the question changed.Instead of asking whether AI can generate revenue, managers increasingly focused on who will finance the infrastructure buildout and whether the cash flows will cover the debt behind it.That shift showed up in the breadth of ownership.

Hedge Funds Cut Magnificent Seven Longs As AI Debt Risks Come Into Focus

Technology / Semiconductor / Internet Research

Nicolas Baratte

Equity Bottom-Up

<ul>
<li>Alphabet aka Google: some room for Consensus to increase, Cloud growth * margins expansion are accelerating. Valuations are reasonable at 27x next year EPS for 18% EBIT Cagr over ’25-28.</li>
<li>Amazon: highest growth at 27% EBIT Cagr over ’25-28, same valuations as GOOG: 27x next year. Relative to GOOG, you probably apply a valuation discount to eCommerce</li>
<li>Microsoft is probably the best “value” stock: 21x next year earnings, 18% EBIT CAGR but we need to see Cloud margins improving. The latest Capex guidance puts that into doubts </li>
</ul>


Alphabet aka Google: some room for Consensus to increase, Cloud growth * margins expansion are accelerating. Valuations are reasonable at 27x next year EPS for 18% EBIT Cagr over ’25-28.
Amazon: highest growth at 27% EBIT Cagr over ’25-28, same valuations as GOOG: 27x next year. Relative to GOOG, you probably apply a valuation discount to eCommerce
Microsoft is probably the best “value” stock: 21x next year earnings, 18% EBIT CAGR but we need to see Cloud margins improving. The latest Capex guidance puts that into doubts 


Hyperscalers: Consensus Revisions and Valuations Post Earnings. Best Growth Stocks: GOOG and AMZN

Semiconductor & Technology Specialist, Ingenuity

William Keating

Semiconductor & Technology Specialist

Ingenuity

Our focus is exclusively on in-depth research & consulting in the broader semiconductor industry. We focus on the key players, namely Intel, Micron, Qualcomm, Apple, Samsung, NVIDIA, AMD, TSMC & Global Foundries - as well as some of the lesser known, but nonetheless critical, companies such as ASML (for EUV), Mellanox, Cavium, Xilinx etc. We specialise in their products, roadmaps, process technologies, competitive advantages & threats etc. We also help our clients understand the implications of new and emerging technologies, e.g. 3D X-Point, 3D NAND, Carbon Nanotubes, Autonomous Driving, Graphene, Silicon Photonics, Wafer-Level Optics, Artificial Intelligence, FPGA, GPU, ASIC etc. 

Semiconductor Analysis & Research

<ul>
<li>Alphabet reported Q126 revenue of $109.9 billion, up 22% YoY (19% in constant currency), beating Wall Street’s $107.2 billion consensus by a clean $2.7 billion</li>
<li>Net income surged 81% to $62.6 billion. EPS hit $5.11, nearly doubling the $2.62 analyst consensus. Google Cloud, the company’s AI conversion engine, posted $20.2 billion in revenue, +63% YoY</li>
<li>“We are compute constrained in the near term. And as an example, our cloud revenue would have been higher if we were able to meet the demand." Uh oh!</li>
</ul>


Alphabet reported Q126 revenue of $109.9 billion, up 22% YoY (19% in constant currency), beating Wall Street’s $107.2 billion consensus by a clean $2.7 billion
Net income surged 81% to $62.6 billion. EPS hit $5.11, nearly doubling the $2.62 analyst consensus. Google Cloud, the company’s AI conversion engine, posted $20.2 billion in revenue, +63% YoY
“We are compute constrained in the near term. And as an example, our cloud revenue would have been higher if we were able to meet the demand." Uh oh!


Alphabet Q1 2026. Enterprise AI Demand Now The Primary Growth Driver For Google Cloud

<ul>
<li>In aggregate, the 4 hyperscalers reported excellent results. Revenue growth is accelerating. Cloud growth is accelerating. Margins are increasing. Which in turns translates into higher Capex.</li>
<li>Capex growth (65% in 2025 and ~100% in 2026) will remain way above revenue growth (15% and ~20%) and operating profit growth (17% and ~25%). </li>
<li>Consensus remains desperately too low on growth, margins, capex. Consensus will revise up. This doesn’t remove the concern above, but can support share price momentum.</li>
</ul>


In aggregate, the 4 hyperscalers reported excellent results. Revenue growth is accelerating. Cloud growth is accelerating. Margins are increasing. Which in turns translates into higher Capex.
Capex growth (65% in 2025 and ~100% in 2026) will remain way above revenue growth (15% and ~20%) and operating profit growth (17% and ~25%). 
Consensus remains desperately too low on growth, margins, capex. Consensus will revise up. This doesn’t remove the concern above, but can support share price momentum.


Hyperscalers: Excellent 1Q26! Higher Revenue Growth, Margins Expansion Supporting Higher Capex

Global Equities, Multi-Asset PM, Dantes Outlook

Damanick Dantes, CMT

Global Equities, Multi-Asset PM

Dantes Outlook

We invest over a full market cycle, using multi-asset portfolios tailored to each global client, from individuals to family offices.

Built to Endure

Cross Asset Strategy

<ul>
<li>Global equities and commodities contributed to gains throughout our portfolio suite, driven by positive selection effects.</li>
<li>Aggressive strategies continue to outperform their respective benchmarks YTD, especially as tech and crypto stabilize.</li>
<li>Positioning carries over into September, maintaining an underweight to bonds and overweights to global stocks and commodities.</li>
</ul>


Global equities and commodities contributed to gains throughout our portfolio suite, driven by positive selection effects.
Aggressive strategies continue to outperform their respective benchmarks YTD, especially as tech and crypto stabilize.
Positioning carries over into September, maintaining an underweight to bonds and overweights to global stocks and commodities.


Portfolio Update: Selective in Global Stocks, Commodities, Underweight Bonds

United States

Alphabet, Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.

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Alphabet (GOOG US)

Hedge Funds Cut Magnificent Seven Longs As AI Debt Risks Come Into Focus

Hedge funds kept artificial intelligence at the center of their portfolios in August, but the question changed. Instead of asking whether AI can...

Hedge Fund Alpha

Hyperscalers: Consensus Revisions and Valuations Post Earnings. Best Growth Stocks: GOOG and AMZN

Alphabet and Amazon have reasonable valuations with strong growth potential, while Microsoft is seen as the best "value" stock but faces...

Nicolas Baratte

Alphabet Q1 2026. Enterprise AI Demand Now The Primary Growth Driver For Google Cloud

“We are compute constrained in the near term. And as an example, our cloud revenue would have been higher if we were able to meet the demand." Uh oh!

William Keating

Hyperscalers: Excellent 1Q26! Higher Revenue Growth, Margins Expansion Supporting Higher Capex

Hyperscalers are seeing accelerating revenue and cloud growth, leading to higher margins and Capex, with consensus likely to revise up.

Nicolas Baratte

Portfolio Update: Selective in Global Stocks, Commodities, Underweight Bonds

Breakdown of our global multi-asset portfolios with performance and positioning. We're overweight stocks and commodities and underweight bonds,...

Damanick Dantes, CMT

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52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hedge Funds Cut Magnificent Seven Longs As AI Debt Risks Come Into Focus

Hedge funds kept artificial intelligence at the center of their portfolios in August, but the question changed. Instead of asking whether AI can...

Hedge Fund Alpha

Hyperscalers: Consensus Revisions and Valuations Post Earnings. Best Growth Stocks: GOOG and AMZN

​Alphabet and Amazon have reasonable valuations with strong growth potential, while Microsoft is seen as the best "value" stock but faces...

Nicolas Baratte

Alphabet Q1 2026. Enterprise AI Demand Now The Primary Growth Driver For Google Cloud

“We are compute constrained in the near term. And as an example, our cloud revenue would have been higher if we were able to meet the demand." Uh oh!

William Keating

Hyperscalers: Excellent 1Q26! Higher Revenue Growth, Margins Expansion Supporting Higher Capex

​Hyperscalers are seeing accelerating revenue and cloud growth, leading to higher margins and Capex, with consensus likely to revise up.

Nicolas Baratte

Portfolio Update: Selective in Global Stocks, Commodities, Underweight Bonds

Breakdown of our global multi-asset portfolios with performance and positioning. We're overweight stocks and commodities and underweight bonds,...

Damanick Dantes, CMT

Alphabet and Amazon have reasonable valuations with strong growth potential, while Microsoft is seen as the best "value" stock but faces...

Hyperscalers are seeing accelerating revenue and cloud growth, leading to higher margins and Capex, with consensus likely to revise up.