One of Wall Street's Best Hedge Funds Just Blew a 44% Gain Because of AI Bets
At the end of June, Lone Pine Capitals flagship hedge fund was up 44% for the year. Three months later, almost all of it was gone after its bets on AI stocks turned. The fund, called Cypress, finished September up just 0.6%, Bloomberg reported. Lone Pine manages about $19 billion. It had posted double-digit gains three years in a row. Sponsored Sponsored The AI Bubble Is Affecting Biggest Wall Street Traders Lone Pine Capital is historically considered one of Wall Streets most successful and prominent hedge funds. However, its recent performance has experienced sharp ups and downs. July did most of the damage. Cypress lost nearly 25% that month as AI and tech stocks sold off. Tensions involving Iran and a spike in oil prices made the rout worse. The timing was brutal. Lone Pine bought five of its seven biggest US stock positions in the second quarter, according to figures cited by Hedgeweek. Together, they made up about 40% of its US portfolio. The biggest was Nebius Group, a Dutch company that rents out AI computing power. Lone Pine held about $1.18 billion of it. The stock fell nearly a third in July. Q3 share-price falls for Applied Materials, Nebius Group and Seagate, top Lone Pine hedge fund









