Aaron Weitman’s Castleknight Management lost 16% in the first quarter, facing challenges from the selloff in artificial intelligence-related stocks and other areas.
Weitman is David Tepper’s nephew and was a long-time partner at Tepper’s Appaloosa Management before establishing Castleknight.
Read more hedge fund letters here
Castleknight varies widely from Appaloosa
In fact, Tepper actually backed Castleknight at its launch, although it’s unclear whether he still invests with Weitman.
We do know from 13F filings that Castleknight’s portfolio looks very different from Appaloosa’s, so investing in Castleknight would give Tepper significant diversification. In September, he told CNBC it was time to “buy everything” in China.
Tepper certainly did that in Q4 2024, adding to positions like e-commerce giants Alibaba and PDD Holdings while cutting his position in U.S.-based Amazon. He also added to other China holdings, including Chinese e-commerce giant JD, the iShares China Large-Cap ETF, the KraneShares CSI China Internet ETF, and Chinese real estate holding company KE Holdings.
Breakdown of Castleknight’s Q1 underperformance
In his Q1 2025 letter to investors, a copy of which was reviewed by Hedge Fund Alpha, Weitman said they were disappointed in their performance at the beginning of 2025, March was Castleknight’s most difficult month, with the first quarter being its more "challenging quarter" of performance since its launch 54 months ago.
Login required to continue reading.
Setup a free account to get access to this article (no credit card required).
View Full Article
