1 day ago
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Soumya Eswaran
Wed, May 6, 2026 astatine 9:04 AM CDT 4 min read
Bristlemoon Capital, a planetary equities firm, released its “Bristlemoon Global Fund” first-quarter 2026 capitalist letter. The Bristlemoon Global Fund returned -25.5 percent successful the March 2026 quarter, with a -3.4 percent instrumentality for March 2026, nett of fees. A transcript of the missive is disposable to download here. This was the Fund's astir terrible drawdown since inception, caused not by declining earnings, but by crisp and accelerated repricing by investors. The missive outlined the anemic performance, however the steadfast addressed it with a compounding/conviction presumption sizing framework, and adjustments pursuing the Iran War developments. The archetypal 4th of 2026 saw a crisp sell-off successful bundle companies, mostly owed to fears that AI would interaction SaaS companies. During this dislocation, the steadfast accrued its holdings of high-quality assets astatine little prices. Long-term net maturation remains key, and the steadfast believes its positions are well-placed to compound net attractively implicit time. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.
In its first-quarter 2026 capitalist letter, Bristlemoon Global Fund highlighted AppLovin Corporation (NASDAQ:APP). AppLovin Corporation (NASDAQ:APP) is simply a mobile exertion institution specializing successful processing software-based platforms for advertisers to heighten the selling and monetization of their content. On May 5, 2026, AppLovin Corporation (NASDAQ:APP) closed astatine $478.11 per share. One-month instrumentality of AppLovin Corporation (NASDAQ:APP) was 22.22%, and its shares gained 57.55% implicit the past 52 weeks. AppLovin Corporation (NASDAQ:APP) has a marketplace capitalization of $160.77 billion.
Bristlemoon Global Fund stated the pursuing regarding AppLovin Corporation (NASDAQ:APP) successful its Q1 2026 capitalist letter:
"AppLovin Corporation (NASDAQ:APP), the largest presumption successful the Fund, declined by astir -41% successful the March quarter. This drawdown successful the banal was a worldly deed to the Fund’s show for the quarter. Like galore of the Fund’s different holdings, expectations for aboriginal net for APP person steadily increased, yet the stock terms plummeted owed to misplaced AI-disruption fears. In different words, each of the APP banal terms diminution was driven by a diminution successful the net multiple.
Some of the APP banal terms movements during the 4th are worthy recounting to item the bizarre trading enactment we observed. For example, APP declined by -30% successful January 2026. This included a -17% single-day selloff pursuing Google’s announcement of Project Genie – a generative-AI instrumentality enabling users to make 3D playable worlds via substance prompts. This terms diminution appeared irrational to us, fixed that this improvement is much apt to beryllium affirmative for APP. In a satellite wherever AI reduces the barriers to crippled contented creation, we would apt spot an detonation of caller mobile games. And successful a satellite flooded with games, contented becomes commoditised, and organisation – that is, getting your crippled successful beforehand of radical who privation to play it and walk wealth – becomes the scarce asset..." (Click present to work the afloat text)
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