Gerstner emphasizes Altimeter's SPAC charges companies zero fees while delivering outcomes identical to traditional bank IPOs.
“while the day of the IPO and the day after the IPO are nearly identical as if a bank took you public, we don't charge your company a fee. None. Zero.”
Gerstner emphasizes Altimeter charges zero fees to companies going public via SPAC.
“And while the day of the IPO and the day after the IPO are nearly identical as if a bank took you public, we don't charge your company a fee. None. Zero.”
Gerstner says Altimeter's SPAC model lets founders set their own price and select their shareholders.
“You set the price, you tell the story with forward looking forecasts. We serve up a world class group of mutual funds and hedge funds as your shareholders. You ring the bell, it's your IPO.”
Gerstner argues Altimeter's SPAC approach takes companies public faster by acting as owners rather than agents.
“We don't act like agents, we act like owners. We're totally aligned with you. So I mean, we can get you public in a fraction of the time,”
Gerstner distributed $6B last year, exceeding total capital raised in first five funds.
“Last year, we distributed over $6,000,000,000, which was more than all the venture we raised in our first five funds.”
Gerstner reveals Altimeter held an investor day before ChatGPT's release focused on cloud data migration and AI applications.
“We hosted an investor day last year before chat GPT came out, and the the the thesis or the theme of the investor day was all the world's data moving to the cloud, augmented and intelligent applications being built on top of it.”
Gerstner reveals Altimeter tracked 100 potential IPOs in 2021, three in 2022, and zero in 2023 year-to-date.
“So that was 46 in 2020, a 100 in 2021, three in 2022, and zero year to date in 2023.”
Gerstner says Altimeter reduced long exposure by at least 50% since year start.
“-We've reduced our exposure quite considerably, you know, by, you know, at least 50% since the start of the year.”
Gerstner reveals Altimeter has passed on 75 AI investment opportunities in the last twelve months.
“Today to me, you know, we've passed on 75 AI businesses over the course of the last twelve months that we've looked at, not because we don't think those are good founders or maybe even good business models,”
Gerstner launched Altimeter in 2008 with promised funding from endowments despite the financial crisis.
“I had, you know, I had some endowments who had promised me some money at the end of two thousand and seven, but this is a good lesson, starting any business, right?”
Gerstner says Altimeter's NVIDIA numbers remain well above Street consensus for this year.
“Our numbers are still well above the street for this year. I think there's a lot of doubt. You know, the the common, discussion at the end of last year”
Gerstner says he banned the term ARR at Altimeter when discussing AI revenues.
“But when we look at what's going on in AI, I've banned the use of the term ARR within altimeter when we talk about AI revenues,”
Gerstner reveals Altimeter is 60% net long, with six of ten dollars at risk in the market.
“Our net exposures are 60%. What does that mean again? Reminder for folks at home. That means I have six out of ten dollars at risk long the market in our hedge fund.”
Gerstner says Altimeter's peak exposure to major tech stocks was 70% and they've taken almost half off.
“Altimeter's peak exposure to these names was about 70% over the course of the last twelve months. So we had 70% of our dollars at one point in time in these names.”
Gerstner says his first public fund stock was Priceline at $45, now over $4,000.
“I bought my first stock that I bought in the public fund in 2008, 10/01/2008, was Priceline at $45 a share. Today, it's over $4,000 a share.”
Gerstner says Altimeter processes 100 million credit card receipts daily and tracks consumer behavior through email receipts.
“we process probably 100,000,000 credit card receipts a day. So we have a very fine view of what The US consumer does.”
Gerstner announces Altimeter led Series A in all-American rare earth magnet producer enabled by tariffs.
“At Altimeter, we just led the Series A in a company I don't even know if we've announced it, but I'll announce it here which is an all American producer of rare earth magnets.”
Gerstner reveals Altimeter invested in NVIDIA in December 2022, up 10x as revenue grew from $30B to over $200B.
“The stock's up over ten ten times. 10 x over that period of time as the revenue went from roughly $30,000,000,000 a year to over $200,000,000,000 a year.”
Gerstner says Altimeter's investment thesis for two years has been correlation to intelligence improvements.
“The overarching theme now for two years at Altimeter is we wanna be positively correlated to improvements in intelligence.”
Gerstner reports last month was Altimeter's best month ever in over twenty years.
“It was our best month in the history of Altimeter. And we're bouncing off, you know, a bottom that was a, you know, a tough month the month before, but we stayed the course.”
Gerstner says his firm Altimeter will contribute to accounts for all 85 children of its 36 employees and that the program is designed for businesses of all sizes to participate easily.
“Here’s the key. This is not just about the largest companies in America. Take Altimeter, we have 36 employees at Altimeter. We have about 85 kids of those employees. And we are going to donate to every one of those kids’ accounts. This is for every small business, every local restaurant, every landscaper, every contractor, every medium sized business and every large business. We make it really easy to add money to these accounts.”