Bronte Capital, an investment management company, released its “Amalthea Fund” second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Fund posted a 6.49% net return in June, bringing the quarterly returns to 5.12%, compared to 3.17% and 14.48% for the globally diverse MSCI ACWI in ($A), respectively. The outperformance in June was driven by gains in its short positions in materials and energy, while healthcare shorts were a drag. Long positions in DSM Firmenich and Brambles added value, while Amazon and Alphabet detracted. In the current economic climate, a 5.12% quarterly performance seems lacking, given the AI-driven bull market, noting that companies supplying AI infrastructure have surged. The letter highlighted that while AI has the potential to greatly enhance productivity, it also raises concerns about short-term risks due to potential labor displacement caused by AI. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Bronte Amalthea Fund highlighted Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL), the parent company of Google, offers various platforms and services, including online search and advertising, cloud solutions, and artificial intelligence, and is a significant contributor to the Strategy’s performance. On August 05, 2026, Alphabet Inc. (NASDAQ:GOOGL) closed at $362.43 per share, reflecting a market capitalization of $4.43 trillion. Alphabet Inc. (NASDAQ:GOOGL) posted a one-month return of 0.38%, while its shares gained 83.32% over the past 52 weeks.
Bronte Amalthea Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q2 2026 investor letter:
“With all those caveats about what we do and do not know about AI, we should discuss our own portfolio. We will start with the stock that worries us most and is nearest the centre of the heat: Alphabet Inc. (NASDAQ:GOOGL). To explain the Google’s challenge, we offer a cautionary tale about management failures that destroyed a pillar of the Australian financial system — and explain how Google has so far avoided that trap.
Google has a search business that produces vast profits by displaying ads. It is threatened by AI. There is a possible future emerging where people query computers via AI, bypassing the search engine. There is a bleaker (for Google) future where people interact with computers as you might in Star Trek: The Next Generation: you ask the computer something with your voice, and the computer gives a nuanced answer and acts as your agent. In a voice-controlled AI world there is no space for advertisements — and no place for traditional Google Search…” (Click here to read the full text)
