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ValueAct "Rocket is our biggest new investment of 25. Our thesis is simple idea: this is not just a mortgage firm it is a tech platform in one of the most consumer-hostile, fragmented, and bureaucratic categories of American finance." Q2 letter $RKT
https://t.co/acLevmuURS
I'm sure luck has benefited Situational, however
(1) I think the below viral post (that it's all been marketing) is false and thus it may be at risk bearing false testimony: "You shall not bear false testimony"
(2) I can't read people's minds, but it is also written: "You shall not covet your neighbor’s house; you shall not covet your neighbor’s wife, or his male servant, or his female servant, or his ox, or his donkey, or anything that is your neighbor’s"
https://t.co/BHEve6ljNj
Seth klarman at the iConnections Global Alts conference in New York says that Google was obviously cheap when he bought it, and that it is going to be big when it comes to AI.
Klarman says owning the LLMs is not a Warren Buffett bet. It requires the companies to constantly invest in their product to maintain an edge.
That is such an enormous valuation.
He says he's 67 and he sees himself managing Baupost for another 10 years. He doesn't want to stay when he's too old; he wants to hand it off when it's the right time, but he probably still has many good years left in him for now.
1/ While most investors are chasing AI winners, Seth Klarman is looking somewhere else entirely.
Baupost is hunting AI agnostics and perceived AI losers. 🧵
The market cap aspect is more interesting. Only two are above 100 billion, and one of those is just barely.
SpaceX is going to be at 1.8 trillion, Anthropic and OpenAI should be in the trillion range.
Just a few years ago, a $75 billion IPO was considered big .
3/ Speaking at @iconnections_io Global Alts New York 2026, Klarman revealed where Baupost is finding value while the market obsesses over AI.
His favorite area today? Commercial real estate.
His single best idea? Assisted living.
Full interview:
https://t.co/mcAsrUjxkE
1/ While most investors are chasing AI winners, Seth Klarman is looking somewhere else entirely.
Baupost is hunting AI agnostics and perceived AI losers. 🧵
2/ Klarman says software credits, travel, roofing, housing-related businesses, and select commercial real estate opportunities are being ignored as capital floods into AI.
Meanwhile, Baupost continues to own $AMZN and $GOOGL while avoiding the trillion-dollar private AI names.
Citadel just released its Tokenomics research. Worth a read for all semis and software investors on X.
According to Citadel, the best returns will come from companies that lower Ai costs and improve efficiency, not those building the best models.
- AI is hitting economic limits. Citadel's message is that the constraint is no longer model capability—it's token costs, compute, power, and inference budgets.
- Customers are already optimizing for cost. Rising token bills are pushing users toward cheaper models and more efficient workflows, suggesting AI demand may be more price-sensitive than investors assume.
NEW: malware developers added nuclear & biological weapons text to to their spyware.
Goal? To trigger LLM safety refusals... so that their spyware wouldn't be analyzed by an AI security scanner.
Cleanest practical example I can think of for why over-indexing on first order safety alignment is risky.
When closed (and open) models ship with aggressive refusals, they will be sprinkled with second-order blindspots that attackers will discover...and exploit.
We are only in the earliest days of attackers leveraging these features, and it wouldn't surprise me if users systems that need to handle complex cybersecurity issues demand that models be less safety-blunted.
In the weeds: @SocketSecurity's post also shows why intention matters in how you design a malware analysis pipeline to avoid prompt manipulation.
H/T to colleagues that shared this with me https://t.co/f3Aj9TYxU4
I’ve purposefully never come close to owning a share of Nick Trainwreck’s investment trust. It would be laughable if it weren’t so sad for shareholders that @thetimes lets him use our name in vain to distract from the impossibly bad performance. Maybe the journalist should instead ask how a long-only equity fund is down 50% over the past years?
https://t.co/IUhWqKCQJU