Blue Tower Asset Management, an investment Management Company, released its third quarter, 2023 investor letter. A copy of the same can be downloaded here. In the quarter, the Blue Tower Global Value had a -2.19% return net of fees (-1.94% gross). The rates on US government treasuries rose sharply this quarter as the Federal Reserve pushed back their predictions for interest rate decreases. This drop in long-term bond prices triggered a selloff in equity markets. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Blue Tower Asset Management highlighted stocks like Meta Platforms, Inc. (NASDAQ:META) in the third quarter 2023 investor letter. Headquartered in Menlo Park, California, Meta Platforms, Inc. (NASDAQ:META) is a technology company that develops products to connect people. On December 19, 2023, Meta Platforms, Inc. (NASDAQ:META) stock closed at $350.36 per share. One-month return of Meta Platforms, Inc. (NASDAQ:META) was 2.60%, and its shares gained 192.55% of their value over the last 52 weeks. Meta Platforms, Inc. (NASDAQ:META) has a market capitalization of $900.376 billion.
Blue Tower Asset Management made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q3 2023 investor letter:
“On February 24, 2023, Meta Platforms, Inc. (NASDAQ:META) released Llama, their LLM project, with the code being open-source but the training weights being kept proprietary. Nonetheless, within a week the training weights were leaked for the project. This release of the weights for 65 billion parameter model was a huge gift for open-source programmers to begin experimenting upon. Within weeks, other developers were creating innovations building on the model. There has been a race towards developing low-budget fine-tuning projects that can be trained for specific applications at the cost of a few hundred dollars in some cases. Some of these LLM projects can even be run on individual computers rather than data centers.
After the voluntary release of Llama’s architecture as open-source, the leak of the model weights ended up being a blessing in disguise for Meta. The innovation and improvements that followed were all built on Meta’s AI codebase. They were able to get these innovations without needing to pay any of the open-source developers for their efforts. This also demonstrates that the business advantage of the large tech companies is not in their models or AI codebase. Any innovations that the companies develop are unlikely to stay within the walls of the companies due to the mobility of researchers being poached between companies by recruiters. However, as these new model improvement technologies are made, the big tech companies have a scale advantage. They will be able to employ it into models that have more data, more compute budget, more parameters and therefore more intelligence in the resulting neural net.”
Photo by Alexander Shatov on Unsplash
Meta Platforms, Inc. (NASDAQ:META) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 234 hedge fund portfolios held Meta Platforms, Inc. (NASDAQ:META) at the end of third quarter which was 225 in the previous quarter.
We discussed Meta Platforms, Inc. (NASDAQ:META) in another article and shared the list of most promising AI stocks according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
