Why don’t HF’s spend time on AI stocks?

When you speak with HF analysts they just talk about some saas business they like, but so rare to hear them talk about real AI stocks (aside from nvda)? Like BBAI, SOUN, AI, SMCI, all these big opportunities up 200% this year that no one caught? Many of them were in nvda 13f, and still never hear about them. lol is that why HFs underperforms QQQ this year (again)?

 
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Most HFs strategy isn't just catching a theme. They are not designed to identify a bunch of themes ahead of when they'll all-of-a-sudden matter. AI has been a hot topic for years believe it or not and now all of a sudden that NVDA has the numbers to show for it, every other related stock goes up. It is incredibly similar to the 2021 dynamics of meme-like momentum/FOMO style trading that got a bunch of HFs smoked the following year when all those tailwinds subsided for the MAJORITY of those companies. Crypto is the same thing. Hell why aren't HFs balls long BTC?? It's up a ton, right??

Point is hedge funds are looking for dramatic changes in fundamentals across a multitude of timelines. I agree with the idea that if you're a tech focused hedge fund and you aren't all over a lot of this stuff then you deserve to be out of biz but also a ton of this stuff is just as mentioned above 1) not scaleable, 2) not financially viable, or 3) a fad

 

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