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Hi Sarah, here's what you need to know for
<strong>
July 31st
</strong>
in
<strong>
3:15 minutes
</strong>
.
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Stockpicking hedge funds are finally seeing results – and, after years of rejection, investors are giving them another chance
</span>
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Meme stock frenzies and “gamma squeezes”, explained –
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Anthropic’s latest funding round could cement its place among the world’s most valuable startups
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<p style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
</p>
<p data-block-key="lp7rd" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
What’s going on here?
</b>
</p>
<p data-block-key="elne4" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Stockpicking hedge funds finally started choosing winning trades – and in return, investors have been picking
<i>
them
</i>
.
</p>
<p data-block-key="8o6p8" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
What does this mean?
</b>
</p>
<p data-block-key="9uiq7" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
These types of funds – snazzily called “long-short equity hedge funds” – aim to back winning stocks and bet against losing ones at the same time. But in recent years, they’ve underperformed the market and lost investors’ loyalty.
</p>
<p data-block-key="6n4ni" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
🔺 2025 seems different, though. Major funds
<b>
TCI
</b>
,
<b>
Egerton
</b>
,
<b>
SurgoCap
</b>
, and
<b>
D1
</b>
all made double-digit returns between January and June. It tracks, then, that investors have pushed $10 billion into long-short equity hedge funds in that time, after nearly a decade of net withdrawals.
</p>
<p data-block-key="dt4m0" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
Why should I care?
</b>
</p>
<p data-block-key="3if9f" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
<i>
Zooming in:
</i>
</b>
<i>
It’s a stockpicker’s world (again).
</i>
</p>
<p data-block-key="e8lek" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
– Hedge funds are benefiting from on-again, off-again tariffs. They’ve made markets more volatile, which means more opportunities for funds to make calls (and get paid for being right).
</p>
<p data-block-key="c4uq4" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
– Plus, changing monetary policy has broken the trend of different assets moving in the same direction. Success is now splintered across styles, sectors, and regions: value stocks are beating growth ones, financials and industrials are catching back up to tech, and European markets are outpacing American ones – all of which creates a better environment for long-short trades.
</p>
<p data-block-key="b8s7l" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
► But that impacts more than hedge funds.
<b>
You might find that investing in stock market indexes doesn’t cut the mustard like it used to.
</b>
Besides assets scattering, the unpredictable effects of AI, geopolitics, and changing interest rates could shrink your returns from those blanket bets.
</p>
<p data-block-key="bs3rv" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
► This environment could be perfect for stockpickers who can stay nimble and spot movements early, though.
</p>
<p data-block-key="76mqa" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
<i>
The bigger picture:
</i>
</b>
<i>
This rising tide won’t lift all hedge fund yachts.
</i>
</p>
<p data-block-key="6bffv" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Some stockpicking funds may be celebrating – but overall, hedge funds still face steep fees, long lockups, and shaky performance in times of crisis. That’s worn out UC Investments: the $190 billion fund has reallocated its 10% hedge fund share to plain old stocks and bonds instead.
</p>
<p style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px; margin: 0;">
</p>
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<b>
You might also like:
</b>
<a style="color: #204CE9; text-decoration: underline; font-weight: 500;">
Short-selling hedge funds are going extinct – but the strategy still has life in it
</a>
.
</p>
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<strong>
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🎸 Don't Look Back In Anger
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It was bad enough missing out on tickets to the Oasis tour...
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We'd hate for you to have FOMO about another Supersonic opportunity:
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watch our latest Reel to discover the investing lesson hidden in the boys' tour
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.
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Watch The Reel
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FROM OUR RESEARCH DESK
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Meme Stock Frenzies Still Happen. Here’s How They Work.
</h2>
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Reda Farran, CFA
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<a style="color: inherit; text-decoration: underline; font-weight: inherit;">
Meme stocks
</a>
are back, but with a whole new cast of characters.
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Forget GameStop and AMC: last week, names like
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Opendoor and Kohl’s
</a>
were the ones soaring, some by triple digits in just a few days.
</p>
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It’s a throwback to when everyday investors took on Wall Street’s pros over
<a style="color: inherit; text-decoration: underline; font-weight: inherit;">
GameStop
</a>
in early 2021, briefly turning it into the world's hottest company.
</p>
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So this is a perfect opportunity to break down one of the biggest (and least-understood) factors behind these
<a style="color: inherit; text-decoration: underline; font-weight: inherit;">
wild surges
</a>
, and explain how you might spot similar situations elsewhere.
</p>
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That’s today’s Insight:
<a style="color: inherit; text-decoration: underline; font-weight: inherit;">
meme stock frenzies and “gamma squeezes”, explained
</a>
.
</p>
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<b>
Read or listen to the Insight here
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</a>
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You don’t need to be a Wall Street insider to spot the next trillion-dollar trend. Heck, half of their industry knowledge is already out-of-date by the time you see it anyway.
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Scientific breakthroughs are reshaping entire sectors
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<img alt="Claude Nine" height="auto" src="https://inboxflows.com/_/image/https%253A%252F%252Ffinimize-img.imgix.net%252Fhttps%253A%252F%252Fchivas-assets.s3-eu-west-1.amazonaws.com%252Fstatic%252Fimages%252FEditorial-300725-Claude9.original.jpg%253Ffit%253Dclip%2526h%253DNone%2526ixlib%253Dpython-3.1.2%2526w%253D768%2526s%253D089406636ff789e0c6b544c4818216bf/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZmaW5pbWl6ZS1pbSIsInRpbWUiOjE3NTM5MTMxMjAuMTA5MjAwN30:1uhEvI:rK97HVVPHsXJ13_4GuWdM2UjRo9pJ22yQU0v19W8Aoo" style="border:0;border-radius:4px;display:block;outline:none;text-decoration:none;height:auto;width:100%;font-size:13px;" width="568"/>
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<h4 class="text-body" style="font-family: 'Poppins', Helvetica, arial, -apple-system, sans-serif; font-weight: 700; line-height: 1.25; margin-bottom: 16px; color: #171E27; font-size: 16px; font-family: 'Poppins', Helvetica, arial, -apple-system, sans-serif; margin-top: 0;">
</h4>
<p style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
</p>
<p data-block-key="2tzyv" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
What’s going on here?
</b>
</p>
<p data-block-key="8598b" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Anthropic is close to raising up to $5 billion in fresh funding, which would nearly triple its valuation and make it one of the world’s most valuable startups.
</p>
<p data-block-key="cmdo7" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
What does this mean?
</b>
</p>
<p data-block-key="8t3m1" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
– This funding round would value Anthropic at $170 billion – catapulting it past nearly every startup on record, and placing it just behind OpenAI ($300 billion) and SpaceX ($400 billion).
</p>
<p data-block-key="3ald6" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
– You can see why investors are interested. Anthropic’s annual recurring revenue has jumped from around $1 billion to $4 billion in mere months, and that number’s expected to swell to $9 billion by the end of the year. That’s extra impressive when you remember that Anthropic controls just a small share of the AI market.
</p>
<p data-block-key="b6ao6" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
Why should I care?
</b>
</p>
<p data-block-key="7ksq5" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
<i>
For markets:
</i>
</b>
<i>
Anthropic’s AI could lift more than just its own bottom line.
</i>
</p>
<p data-block-key="1egi3" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Anthropic’s “Claude” AI models are increasingly tailored for businesses – think tools that can analyze financial filings or streamline compliance workflows.
</p>
<p data-block-key="6hgmc" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
► That’s good news for corporate America. Goldman Sachs estimates AI could increase US productivity by 1.5 percentage points a year over the next decade. And that, in turn, could
<b>
lift S&P 500 profit margins by
</b>
<b>
<i>
four
</i>
</b>
<b>
percentage points
</b>
.
</p>
<p data-block-key="28tda" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
► So while tech firms like Anthropic might grab the headlines (and the funding rounds), the real upside could be what they offer the rest of the economy.
</p>
<p data-block-key="45op8" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
<b>
<i>
Zooming in:
</i>
</b>
<i>
Investors want some bang for their buck.
</i>
</p>
<p data-block-key="dl642" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
– The scale of this funding round demonstrates just how expensive cutting-edge AI has become.
</p>
<p data-block-key="akklu" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
– Anthropic’s $5 billion haul will go straight into computing power, talent, and scaling. Microsoft and Meta know the drill: they’ve invested tens of billions into AI.
</p>
<p data-block-key="5esfi" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
– Once happy to fund those plans on promise alone, investors are now itching for results. Specifically, they want to see revenue growth outpace spending.
</p>
<p data-block-key="2hs0d" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
– Anthropic’s pitch is still drawing a crowd, but its beefed-up valuation will mean even more pressure to deliver later.
</p>
<p style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px; margin: 0;">
</p>
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<p data-block-key="arelz" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px; margin: 0;">
<b>
You might also like:
</b>
<a style="color: #204CE9; text-decoration: underline; font-weight: 500;">
Profit margins have started to sag… AI could have a fix
</a>
.
</p>
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<strong>
Copy to share story:
</strong>
<a class="text-black60 font-normal" style="text-decoration: underline; font-weight: 400; color: #71767B;" target="_blank">
https://app.finimize.com/content/claude-nine
</a>
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QUOTE OF THE DAY
</div>
</td>
<td class="quote-content-cell" style="padding-left: 10px; vertical-align: top;" valign="top">
<p class="font-heading font-bold text-navy leading-snug mb-2 text-subtitle" data-block-key="cygyq" style="margin-top: 0; font-family: 'Poppins', Helvetica, arial, -apple-system, sans-serif; font-weight: 700; line-height: 1.375; margin-bottom: 8px; color: #0C73EC; font-size: 20px;">
"You will never win if you never begin."
</p>
<span class="text-caption font-normal text-blackLight leading-normal" style="font-weight: 400; line-height: 1.5; color: #3C4857; font-size: 12px;">
– Helen Rowland (an American actress)
</span>
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<p data-block-key="2t5l4" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Goldilocks’ first bowl of oatmeal was too hot. The second, too cold. The third: right in the middle, the perfect temperature. (Stay with us here.)
</p>
<p data-block-key="a343r" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
Well,
<a style="color: #204CE9; font-weight: 500; text-decoration: underline;">
mid-cap companies are a bit like that
</a>
. Steamy*. Delicious**. Palatable***. Just enough syrup****. And by that we mean, they often *hold less risk than earlier-stage startups, **have a demonstrably viable business model, ***boast a solid customer base, and ****still have room to expand.
</p>
<p data-block-key="3h028" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px; margin: 0;">
<a style="color: #204CE9; font-weight: 500; text-decoration: underline;">
Read our free guide to find out more
</a>
about this often overlooked category. (Best consumed with an OJ and fresh coffee.)
</p>
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<p class="content-box-header mb-4" style="line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; font-weight: 900; font-size: 16px; margin-bottom: 16px;">
🎯 On Our Radar
</p>
<p data-block-key="wnzwo" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
1.
<b>
Life imitates art.
</b>
Maybe
<i>
don’t
</i>
<a style="color: #204CE9; font-weight: 500; text-decoration: underline;">
get back with your ex
</a>
.
</p>
<p data-block-key="5939p" style="font-size: 16px; line-height: 1.5; color: #283444; font-family: 'Helvetica Neue', Helvetica, arial, -apple-system, sans-serif; margin-top: 0; margin-bottom: 16px;">
2.
<b>
Remember the curry sauce.
</b>
Spice bags are spreading
<a style="color: #204CE9; font-weight: 500; text-decoration: underline;">
from Ireland to, well, literally everywhere
</a>
.
</p>
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3.
<b>
Mark your 2025 bingo cards.
</b>
Katy Perry was seen out with…
<a style="color: #204CE9; font-weight: 500; text-decoration: underline;">
Justin Trudeau
</a>
?
</p>
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4.
<b>
Take your pick: mohawk or neon buzz.
</b>
For your next experimental ‘do, your barber might need a
<a style="color: #204CE9; font-weight: 500; text-decoration: underline;">
visual example
</a>
.
</p>
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5.
<b>
Jubilee broke YouTube’s algorithm.
</b>
The
<a style="color: #204CE9; font-weight: 500; text-decoration: underline;">
controversial channel gets views
</a>
– for better or worse.
</p>
</div>
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🎙 Grab your free ticket...
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<img alt="Modern Investor Summit 2025: December 2nd and 3rd" src="https://inboxflows.com/_/image/https%253A%252F%252Ffinimize-img.imgix.net%252Fhttps%253A%252F%252Fchivas-assets.s3-eu-west-1.amazonaws.com%252Fstatic%252Fimages%252FMIS25-SpeakerAnnouncement-email-1000x500_2.original.png%253Ffit%253Dclip%2526h%253DNone%2526ixlib%253Dpython-3.1.2%2526w%253D768%2526s%253D7ec590e298f720b36ad5c690355f19cd/?inbox_flows_img_sig=eyJwYXRoIjoiaHR0cHMlM0ElMkYlMkZmaW5pbWl6ZS1pbSIsInRpbWUiOjE3NTM5MTMxMjAuMTA5NDk3OH0:1uhEvI:f6avHktiVadrtggiOaBOV6XgfXn9apT_hbtPWo618JY" width="100%"/>
</h4>
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Modern Investor Summit 2025: December 2nd and 3rd
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