Alex Sacerdote's Whale Rock Capital flagship fund fell 21.7% in July as AI and semiconductor stocks faced a significant sell-off.
Alex Sacerdote saw his flagship fund at Whale Rock Capital drop 21.7% in July, nearly halving the firm's year-to-date gains. The $19 billion Boston-based firm experienced a sharp decline from a 72.5% return in June to a 35.1% return through July. This downturn was driven by a broad sell-off in artificial intelligence and semiconductor stocks, including names like SanDisk, Bloom Energy, and CoreWeave, which tumbled amid investor jitters regarding continued high spending on AI infrastructure. While Sacerdote's long-only fund remained positive with a 36.8% gain for the year, the flagship fund's performance was impacted by the memory sector selloff. The losses reflect a broader market trend where investors are becoming increasingly wary of the costs associated with the AI trade. Analysts suggest the pullback may be a market buying opportunity rather than a permanent bust, with the fund's future performance likely depending on the upcoming earnings season.