Alex Sacerdote - How to Invest Through Technology Cycles - [Invest Like the Best, EP.477]
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What is Alex Sacerdote’s investment philosophy and why is Anthropic his top conviction?
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Hello and welcome everyone. I'm Patrick O'Shaughnessy and this is Invest Like the Best. This show is an open-ended exploration of markets, ideas, stories, and strategies that will help you better invest both your time and your money. If you enjoy these conversations and want to go deeper, check out Colossus, our quarterly publication with in-depth profiles of the people shaping business and investing. You can find Colossus along with all of our podcasts at Colossus.com.
Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own opinions and do not reflect the opinion of Positive Sum. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Positive Sum may maintain positions in the securities discussed in this podcast. To learn more, visit psum.vc.
My guest today is Alex Sacerdot, founder of Whale Rock Capital Management. Whale Rock is a technology-focused investment firm that manages more than $17 billion across hedge fund, long-only, and hybrid strategies. Over the past three years, it's been one of the best performing funds, compounding up roughly 44% per year. Alex invests through a single lens that he has refined over 20 years. He looks for technology S-curves, durable competitive advantages, and underappreciated earnings power. This conversation We start with this highest conviction position, which is anthropic, and use it to work through the entire AI stack from chips to models to applications. Please enjoy my conversation with Alex Sacrodo.
Alex, you were saying that your highest conviction position is anthropic right now. Can you tell the story of discovering it, making the investment, using this anecdote as an excuse to talk about all the things that I think you and I are mutually interested right now? Investors like you investing in private markets, entropic to business, AI, everything. It's a great way to zoom in. Why is it your highest conviction and how did you get started?
When the gun went off with OpenAI chat GPT in November twenty twenty two. We immediately took the firm and did a massive deep dive with our 10 person team. Anytime you have a new compute paradigm, there's a new stack, and that creates new winners and losers on the old stack. Now Jensen talks a lot about it, but it's power at the bottom, chips at the bottom, the clouds, and then the foundational models, and then the applications on top. And at that time This was 2023 early, we said we want to be in the chips and the infrastructure first.
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Chapters
3 chaptersSpeakers
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