Gerstner says his hedge fund is running 60% net long exposure despite bullish AI view.
“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”
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 explains nine units of risk means 4.5 billion directionally long on 5 billion portfolio.
“So let's say that you're managing $5,000,000,000 of public equities. Nine units of risk would be that you have 4,500,000,000 of that risk directionally long the market.”
Gerstner tells some portfolio companies to shut down because AI opportunities are too big to miss.
“And I'm sorry if not everybody agrees here, but I'm saying to some of my companies, this is too important a time. The opportunities are too big, right?”
Gerstner advises managing portfolio in three sizes: buy large when despondent, like during Iran war start.
“And when things are all washed out, when everybody's despondent like they were earlier this year over the start of the Iran war, maybe you take your portfolio to a large position.”
Gerstner advises managing portfolios in three sizes: small, medium, and large position allocations.
“A simple heuristic for the people watching at home, think about a sigh think about managing your portfolio in three sizes, small, medium, and large.”
Gerstner says SpaceX IPO will raise about $75 billion, requiring Altimeter to sell other holdings to participate.
“It's gonna raise about 75 it's gonna raise about $75,000,000,000. Okay? So when when if Altimeter and we do wanna buy the SpaceX IPO, I've gotta raise that money from somewhere.”