Alpha Wealth Funds' Insiders Fund reduces Alphabet (GOOG) position, citing market's intolerance for aggressive AI spending
Alpha Wealth Funds' "Insiders Fund" stated in its Q2 2026 investor letter that it has reduced its position in Alphabet, believing the market will not tolerate the company and other hyperscalers spending all free cash flow on data centers for the next two years. The fund noted Alphabet's recent $80 billion stock offering for AI infrastructure has shifted it from a cash-generating asset to a capital-intensive one, weighing heavily on the stock. The fund underperformed the S&P 500 in Q2, partly due to its ~30% concentration in Alphabet.
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