Whale Rock Capital: The $1 Trillion Tech Sector Opportunity

Alexander Sacerdote’s Whale Rock Capital had a strong start to the year gaining 13% net for investors during the first quarter, outpacing both the NASDAQ (9.8%) and S&P 500 (6.1%). Since inception (May 1, 2006) the TMT fund has produced a total return of 223% net, outperforming the MSCI World Infotech index by 78.2% and S&P 500 by 96.6%, according to a Q1 letter to investors reviewed by ValueWalk. During the quarter the hedge fund run by Alexander Sacerdote operated with a 60% net exposure.

Longs contributed 22.1% while shorts detracted 5.9% or 4.7% excluding currency hedges. At the end of the quarter, Whale Rock’s gross exposure was 202% gross and 57%. Hedging strategies accounted for...