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.