Soroban Capital – AI Is Changing The World & These Stocks Will Benefit [Exclusive]

Soroban Capital Partners' Long Only Equity Master Fund returned an impressive 19.7% gross and 18.1% net for the second quarter. The MSCI All County World Index returned 11.5% net for Q2. Year to date, Soroban’s fund is up 16.7% gross and 14.8% net, versus 10% for the MSCI ACWI Index.

Since launching in April 2024, Eric Mandelblatt's hedge fund has generated an 18% gross and 13% net excess return compared to the MSCI ACWI Index. Soroban’s Long Only Equity Master Fund had $5.3 billion in assets under management as of July 1.

Also see ValueAct Capital Adds To Rocket, Dumps These Stocks .

Soroban’s top contributors and detractors during Q2 included:

• Taiwan Semiconductor (NYSE:TSM) +5.97%
• Microsoft (NASDAQ:MSFT) +4.22%
• Ferguson (NYSE:FERG) +2.6%
• Amazon (NASDAQ:AMZN) +1.64%
• Meta Platforms (NASDAQ:META) +1.52%
• Seagate Technology (NASDAQ:STX) +1%
• Western Digital (NASDAQ:WDC) +0.81%
• Brookfield (NYSE:BN) +0.71%
• CDW (NASDAQ:CDW) +0.68%
• Restaurant Brands (NYSE:QSR) -0.54%

As of the end of Q2, Soroban held 22 long positions that were at least 100 basis points in size. Its five largest long positions were TSMC, Microsoft, Amazon, Ferguson and Restaurant Brands.

Big-time technology rotation

Throughout the first half, the fund’s exposure held steady at around 100%, although it significantly changed its intra-portfolio positioning, especially during the tariff-related turmoil of March and April.

Notably, Soroban rotated into technology, which now accounts for 48% of its exposure, the highest level since 2018. The fund also established a new top five position in Ferguson Enterprises and a new position in Rexford. Additionally, Soroban accumulated a 2.1% premium at risk in low delta upside tails in stocks with artificial intelligence exposure through a mix of listed and structured options.

In their second-quarter letter to investors, which was obtained by Hedge Fund Alpha, the Soroban Capital team reported that their portfolio now consists of high-quality companies and themes that “generally possess leading market positions, high barriers to entry, low-to-moderate levels of cyclicality, and compelling growth algorithms. The Soroban team believes their portfolio companies trade at “reasonable valuations.”