Posts by Manager

AI Returns, Data Center Buildout, the Inflation-Rate Overhang, and the Nvidia/Salesforce.com Narratives September 2026 Since mid-August, the technology-heavy portion of the equity market has come under pressure from a combination of fundamental and macroeconomic concerns. Investors have grown more skeptical about the scale of capital expenditures required to support the AI buildout, while local resistance…

Skeptical investors questioning the return on the historic levels of capital expenditures chasing AI leadership positions triggered a sharp downturn in the data-center, semiconductor, and hardware trade in July. Many equities were effectively cut in half. The selloff accelerated when a multi-billion-dollar hedge fund — heavily levered long hardware and short software — blew up…

The Shifting Sands of the AI Trade Investors continue to debate whether the first phase of the AI trade — hardware (semiconductors and servers) and infrastructure investment (data centers and associated technologies) is entering bubble territory. But prudent investors should recall Wayne Gretzky’s maxim: “I skate to where the puck is going to be, not…

A Status Report – Bull Market Accounts managed by Hangar 4 Partners LLC generated a gain of about 27% net of all fees during the quarter, bringing year-to-date performance to about 19% net of all fees. By comparison, the NASDAQ Composite increased 21% for the quarter and 12.8% year-to-date, while the S&P 500 and Dow…

Investor Note: What to Expect in the Final Month of the June Quarter The AI trade delivered two exceptional months of performance in April and May, but June may introduce a more measured tone. As the old Wall Street adage reminds us, trees don’t grow to the sky. The long‑term secular strength of the AI…

About 30 years ago I wrote a research report, “It Is Really Different This Time” that in hindsight proved prescient in forecasting the impact technology would have on every aspect of our lives—work, play, entertainment, and more. As a result, the investment implications would prove to be equally profound. It was a very big call…

Artificial intelligence is moving rapidly from innovation theme to capital cycle, with investment opportunities broadening well beyond model developers and semiconductor leaders. The first leg of the trade was defined by the buildout phase—foundational models, accelerated compute, and the infrastructure required to support scale. We are now entering the next phase, where value creation shifts…

The Time Is Now: Super Growth Cycles Over the Years (AI) Over four decades of investment experience have provided us with a unique perspective on the opportunities presented by several super growth cycles. Two stand out for their impact and transformative power. The Microprocessor Revolution The invention of the microprocessor by Intel in the early…

Thus far in 2025, the stock market performance went from being very narrow, led by a handful of AI-related infrastructure stocks, too much broader participation throughout the quarter.  Ironically, our relative performance during the quarter was initially hampered by investor concerns centered on those industries likely to be disrupted by the implementation of AI, notably…

The Evolution of Artificial Intelligence (AI)- The impact of China’s DeepSeek AI announcement   The Chinese announced the availability of their entry into the AI race, DeepSeek, purportedly, on par with the leading US offerings from OpenAI, Anthropic, and others.  The real breakthrough here is that, according to the Chinese, this AI software can run…