AlphaTarget's Process: How We Invest -🧵 - 1/ Why Stocks? History shows that stocks are the best-performing asset class over the long term, significantly outperforming bonds, gold, and cash. But the stock market is volatile. To harness its power, we focus on disruptive, high-growth companies with substantial long-term potential. 2/ What We Look For We prefer founder-led businesses, as CEOs with skin in the game often deliver superior returns. We target disruptive, rapidly growing companies at the forefront of secular trends redefining how people live, work, and play—allocating capital to dominant businesses in these spaces. 3/ How We Invest Our portfolio typically holds 15-20 carefully chosen, capital-light companies with high margins, strong free cash flow, and preferably recurring revenue. We monitor our holdings closely and sell when operating results, management, or prospects deteriorate. We also use Stage Analysis, holding stocks during "Stage 1" bases and "Stage 2" uptrends, selling when they form "Stage 3" tops. 4/ Dynamic Portfolio Management If we find a new idea better than our weakest holding, we rotate capital into the new opportunity. This ensures our portfolio remains focused on the best opportunities at all times. During "Stage 2" uptrends, when our stocks are over-extended, we may trim our positions and when they become oversold, we add to our high-conviction holdings. When our stocks start forming "Stage 3" tops, we cash out and lock-in our gains. 5/ Handling Market Volatility Stock market cycles bring booms and busts. To protect our portfolio: 🔹 We use trend-following indicators to hedge during downtrends by shorting index futures or ETFs. 🔹In euphoric markets, we may sell and hold cash to mitigate risks. 6/ What We Avoid No options, no short-selling individual stocks, no short-term trades. We stay focused on investing for the long term, aligning with trends to maximise upside and protect downside. In Summary By combining fundamental analysis (investing in promising, rapidly growing businesses), Stage Analysis, and systematic hedging, we aim to generate long-term alpha. Our team publishes deep research on our portfolio companies and our subscribers get exclusive access to our holdings, real-time portfolio moves and our systematic hedging strategy: alphatarget.com

AlphaTarget’s Insights page publishes a new free thematic research note every month, with our entire archive available to explore. Our thematic research notes cover the big trends shaping technology. No subscription required. Explore below 👇 alphatarget.com/insights/

Quantum Momentum Quantum startup funding rose 6.3x last year, Washington is taking equity stakes, Google's Quantum Echoes advantage claim still stands and AI is a tailwind. Our latest note explores the breakthroughs and the challenges ahead 👇 alphatarget.com/insights/qua…

Shared economics of large software players AI enablement should pressure GP margins as economics are shared with model & compute providers. So far, only $NOW 's (ServiceNow) GP margin has declined. $SAP, $CRM and $WDAY are stable/up. Chart: @ycharts

The 4-month trading range appears to be ending and seasonality turns positive now. Expecting a major rally in the leading AI stocks which declined 50-60% in June-July. Time for liftoff?

AI is still early innings. The runway is very long and our portfolio is invested in the leading businesses which are benefiting from this secular trend.

Aug OpenRouter: open-weight took most of the token volume. That’s good enough+cheaper taking share. OpenAI just made GPT-6 workhorse models a lot cheaper, which is a play for the volume layer. Intelligence is becoming cheaper, fast. A win for adoption & the picks and shovels.

AI cost falling this sharply is positive for AI infrastructure Chart @EpochAIResearch

$BABA targets more than 20GW of Alibaba Cloud global data-centre capacity by 2032. In Q1 FY27, its AI cloud & compute services revenue growth accelerated to 45%.

Seasonality turns positive soon and we are also about to enter the best time of the US Presidential Cycle. Our portfolio is positioned for a multi-month advance.

My new mix Shadowflow is now out Hope you enjoy the uplifting house music 🎵🎶🎧 Listen below 👇 piped.video/watch?v=c32NRZ01…

Trend Update $NDX $QQQ in a trading range, the trend is UP NASDAQ-100 holding steady despite all the bad news and we're about to enter the most profitable phase of the US Presidential Cycle. Our portfolio is positioned for the opportunity. alphatarget.com

AI stocks are like coiled springs. Frontier "pacing" is *not* a headwind for AI infrastructure companies. When the market realises this, expect a multi-month rally.

Open weights now account for 78.4% of token volume! This is positive for AI infrastructure companies. Chart @rauchg

Slow hiking cycles are positive for stocks. We're also entering the most positive phase of the US Presidential Cycle and our portfolio is positioned for a multi-month rally. $NDX $SPX Chart @edclissold

3rd Year of the US Presidential Cycle - are you ready? History suggests $NDX to rally hard over next 15 months. The leading growth stocks should do even better.

OpenAI gaining share This acceleration is positive for $ORCL

Stocks rallying after the Fed hike. Frontier model "pacing" isn't a headwind for compute, AI stocks likely to perform well over the following months as we enter the seasonally strong time of the year. Worth monitoring monthly AI revenue.

Fed hikes by 25bps and signals one more hike this year Uncertainty is now out of the way and we're about to enter the seasonally strong time of the year and the most bullish phase of the US Presidential Cycle. Our portfolio is positioned for the opportunity.