I spent a decade at leading hedge funds like Citadel, Millennium, and a Tiger Cub before launching Spear.

Each hedge fund has a unique ways of generating alpha in its fundamental strategies.

Here is what they have in common and what retail investors miss 👇 Concentration.

The biggest mistake retail investors make when trying to generate alpha is overdiversifying.

It's not a bad strategy ...it will just fail to generate alpha.

DeepSeek panic opened a firehouse of opportunities. Who is it negative for and what people missed?

This thread covers the impact on:

1/ Compute Hardware Requirements (+)
2/ Energy Consumption (=)
3/ AI Applications (+)
3/ Open-Source vs. Closed-Source Models (-) Here is a summary of what happened today in case you missed it:

- DeepSeek introduced a new AI Model called R1 based on a similar principle as Open AI's O1

- It costs $6M to make 😲 vs. $ Bs for competitors

- Every hardware maker sold off 10-30%. We don't need any more compute!

If you want to get technical, here is a great thread:

The Spear Alpha ETF $SPRX 3Q24 Letter is out!

Here are the changes we've made and how we are positioned for opportunities going into '25 👇

For fund disclosures, holdings, & performance, see

Let's dive in: spear-funds.com 3Q'24 was a brutal quarter with macro headwinds (e.g., carry trade unwind, election uncertainty, and interest rate concerns) dominating the headlines.

SPRX was down 3.48% in 3Q24 vs. the S&P 500 up 5.89%, and the Nasdaq up 2.76%.

With many of these headwinds dissipating, underlying growth is picking up. => Shifting to offense from defense - buy the dips!

I've spent the past decade at leading hedge funds like Millennium, Citadel and a Tiger Cub.

I often get questions about how to perform due diligence on a new stock.

I will use $NVDA as an example.

Here are 10 critical things new investors often miss, based on my experiences: As a hedge fund analyst at Millennium and Citadel, you are grilled and rewarded for your ability to drive alpha.

Hedge Funds do diligence very differently than long-only and thematic funds. This is how they generate alpha.

It all starts with a thesis and proving/disproving it.

🚀 Exciting news! Our Data Center Primer has dropped!

Technical rotation out of semis ahead of $NVDA earnings is creating attractive entry points.

Blackwell is about to kill it. Let's dive into the fundamentals 👇 1. We attended several events over the past month, gathering edgy data points re: Blackwell and the value chain:

1.1 Key from OCP: GB200 NVL72 is going to be the main Blackwell product. Price tag ~$3M and likely margin accretive when it scales.

1.2. $TSM packaging capacity is >2X from 40K to 80-100K/month exiting '25, which implies 6M units for Blackwell.

x.com/IvanaSpear/sta…

$NVDA While everyone talks about Blackwell selling out, the real question remains: where will the next wave of demand come from?

Even investors like David Tepper "don't know how you know" about GPU demand beyond '25.

Here is something everyone is missing - let's dive in:

$AMD $MRVL $AVGO $TSM Earlier this month @Nvidia added a new slide to their investor deck.

It is about how "thinking time" is driving exponential growth in Inference Compute. The first model set up like this is OpenAI o1🍓

The idea is that instead of generating data from a database, AI can now think.

We have been negative on $TSLA for 3+ years.

Here is what changed 🧵 In the summer of '22, we noticed that FSD, which was supposed to be months away, had some red flags.

A week later, @karpathy a senior director of AI at Tesla, left the company to focus on AI 🤔

$MU Important earnings report as strength in Data Center/AI was able to overcome weakness elsewhere in the business.

Notes from the call and everything you need to know about Micron in🧵 👇 The fundamental pillar of the $MU thesis is that HBM (high bandwidth memory) takes up the available capacity of DRAM (traditional memory).

So, no matter how weak the demand is for DRAM, adding several $ BN of revenues at accretive margins ends up offsetting it.

$NVDA GB300 has memory capacity:
- 2X+ the H200
- 4X+ the H100

$NVDA Lots of nervousness ahead of earnings. Key topics to zoom in ahead of the report:

1. Hopper (H100) stronger for longer?
2. Blackwell - is it really delayed?
3. Systems (GB200) - what is the upside if they can deliver?

BONUS: a detailed bottoms-up framework for forecasting revenues 🧵 1. Hopper - while many were expecting "an air pocket" in demand for the H100, earnings calls are pointing to shortages:

$MSFT blamed supply for the in-line results/miss

$SNOW was not able to rent enough GPU (called out H100 specifically)

$TSLA unable to get the quantities they want (LT comment)

Cloudflare hosted an Investor Day last week, offering a wealth of interesting information regarding their expanding $176B TAM.

Unfortunately, it was overshadowed by the poor results of $CRM & $MDB earnings.

Here are the key takeaways on $NET next growth areas 👇 The main point from their conference is that the environment has not worsened.

If anything, the tone was more upbeat (as a response to weak reports from $CRM $MDB)

$NET has a lot of data, and mgmt is usually the first to spot a slowdown—which they flagged on the earnings.

Is $AMD still an AI play?

With the stock down 35%+ from its peak, investors are starting to doubt it.

Among the pushbacks are valuation & results. Thread w. thoughts on earnings and valuation (incl. sum-of-the-parts) 🧵 👇

Loved sharing with @OJRenick on @SchwabNetwork 1. Valuation: $AMD is trading near the high end of its valuation range (despite the recent pullback), making investors conclude that the stock is expensive. Why does the valuation make sense?

Two reasons:
a) Earnings are at a trough
b) GPU demand is not reflected in earnings

The Spear Alpha ETF $SPRX 2023 Annual Letter is out!

Here is how we were able to deliver an 88% return and how we are thinking about 2024 and the current macro:

For fund disclosures, holdings, & performance, see

Let's dive in: spear-funds.com SPRX was up 88.02% in 2023 compared to the S&P 500, up 26.26%, and the Nasdaq Composite, up 44.70%.

What were the drivers?

Excited to publish Spear's AI primer and ecosystem map!

While most people are focused on the application layer (e.g., ChatGPT, Copilot 365), there is much more to the AI opportunity.

Let's explore each of them below: 1. The Hardware Layer:

$NVDA was already growing its DC business at a ~40% CAGR. But generative AI took this to another level.

Market pullbacks are when the best opportunities arise, yet most people struggle with them.

Citadel stood out in its risk management prowess compared to other hedge funds over 10-yrs ago.

Here's what I learned about risk management during my time there: Three fundamental principles are at play here:

1) Be proactive, not reactive.
2) Embrace idiosyncratic risk instead of avoiding it.
3) Effectively manage your downside.

Now, let's delve into each one:

Time to load up on cyber stocks?

$MSFT announcement to enter the SASE market is sending all cyber stocks down. $ZS $PANW are ~down 7-10% over the past 2 days as a result.

Risks, opportunities, and my thoughts 👇 Expect #cybersecurity to go through an innovation wave driven by #AI.

Not surprising that $MSFT wants to capture some of this growth.

$MSFT is by far the largest cyber player ($20-30bn revenue). Despite this, the "best-in-class" solutions in cybersecurity are NOT Microsoft's.

A company's earnings report makes up almost 80% of its price action.

Your ability to manage risk on earnings is key for capturing alpha.

I've worked at hedge funds like Citadel and Millennium that generate significant alpha from earnings.

Here is how to do it: Why should you care:

• Earnings are crucial times that determine the ST direction of a stock
• Large institutions have expectations and have algos ready to increase/initiate/decrease positions, which leads to big stock movements

It's about results - expectations = % surprise

Nvidia's rally is one of its most hated ever.

Beyond the AI hype, what's driving $NVDA momentum? What's the core thesis behind the business?

Here's an overview of the long-term thesis and the key factors before the earnings report tomorrow: The most important thing for earnings will be F2Q guidance.

1) Investors already expect upside to F2Q (w/ buyside expectations ~$300M higher than Street at $7.2B).

2) Eyes on Data Center sales (buyside at $4.2-4.4bn). This is where AI demand should show up (if it does).

$NET Glass half full vs. half empty?

We just attended Cloudflare's Investor Day.

Below are some of the key takeaways and debates for the stock: The reason behind the Cloudflare guide-down was the extension of sales cycles (up 27%!).

It is very important to understand that Cloudflare has some of the shortest sales cycles in the industry (<1 quarter)

But note the significant YoY growth in new pipeline (red line)

The Spear Alpha ETF Investor Letter is out!

Our ETF was up 25.5% in Q1 2023, outperforming the S&P by 18% and the Nasdaq by 8%.

Below is a commentary on the key drivers behind our outperformance:

For full fund disclosures and holdings visit spear-funds.com.

$SPRX Outperformance was driven by:

1) Semis & AI: $NVDA by the momentum in AI and semis.

2) Enterprise: $HUBS and $SHOP, both companies benefiting from reducing their workforce by 7% and 10%, respectively, while growing revenues at a double-digit rate.

I've been following #copper for over 15 years at leading hedge funds including Citadel & Millennium.

Investors often underestimate the insights that copper prices provide as a barometer for the economy.

Here is what you need to pay attention to: Because of its use across many sectors, copper is seen as a leading indicator of economic health.

Copper prices are the fist to react to any economic uncertainty.

I've spent the past decade at leading hedge funds like Millennium, Citadel and a Tiger Cub.

I've gotten questions about how to perform due diligence like a hedge fund does when given a new stock to cover.

There are 10 critical things many people miss, based on my experiences: As a hedge fund analyst at Millennium and Citadel, you are grilled and rewarded for your ability to drive alpha for your PM.

There are many things, but the core basics include: