Alpha Wealth Funds, LLC, an investment management company, released its Q2 2026 letter for the “Insiders Fund”. A copy of the letter is available to download here. The Fund lost 1.45% in June, while it was up 8.43% for the 2nd quarter and 0.75% YTD. This compares to the S&P 500’s -0.95%, 15.2%, and 9.98% returns, respectively, over the same period. The fund underperformed while the S&P 500 and Nasdaq-100 posted their best quarter in six years. A significant factor in this decline is a ~30% concentration in Alphabet stock, which shifted from a cash-generating asset to a capital-intensive posture following a major stock offering to fund data centers. The performance of the fund was further hampered by losses in AI semiconductor stocks like AMD and Intel, which were sold prematurely. The letter concluded with a commitment to risk management while acknowledging the possibility of mistakes in investment strategy. In addition, please check the fund’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Insiders Fund highlighted Alphabet Inc. (NASDAQ:GOOG). Alphabet Inc. (NASDAQ:GOOG), the parent company of Google, offers various platforms and services, including online search and advertising, cloud solutions, and artificial intelligence. On August 12, 2026, Alphabet Inc. (NASDAQ:GOOG) closed at $342.37 per share, reflecting a market capitalization of $4.19 trillion. Alphabet Inc. (NASDAQ:GOOG) posted a one-month return of -3.23%, while its shares gained 67.98% over the past 52 weeks.
Insiders Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q2 2026 investor letter:
“Business: Alphabet Inc. (NASDAQ:GOOG) dominates search engine (90%+), browser (70%+ Chrome), and mobile OS (70%+ Android) markets. Also a leader in AI (Gemini), Cloud, and autonomous driving (Waymo). ● Insider Buying/Selling: No insider buying; selling exhibits no unusual pattern.
Recent News: Recent $80 billion stock offering has weighed heavily on the stock and the unprecedented capex expansion of all the hyper-scalers, including Alphabet, has dented my conviction that the Company would be a judicious caretaker of shareholder capital. January 12, 2026, Apple and Google announced a landmark multi-year partnership that fundamentally changes how AI works on Apple devices.
Our Thesis: Alphabet has been our favorite name but I believe the market is telling Google and other hyperscalers that spending all of your free cash flow for the next two years building out datacenters because you believe there is a shortage of compute is not going to be tolerated. Until Alphabet gets that message or the market is proved wrong by insatiable demand for compute, we prefer to keep a smaller position. I believe the upcoming quarter will be strong and we may sell into it. We don’t like to bet against Google but we aren’t writing blank checks either.”
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Alphabet Inc. (NASDAQ:GOOG) ranks 7th on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 201 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOG) at the end of the first quarter, compared to 203 in the previous quarter. In 2025, Alphabet Inc. (NASDAQ:GOOG) achieved its first-ever $400 billion annual revenue and in Q1 2026 its consolidated revenue reached $109.9 billion, up 22% or 19% in constant currency. While we acknowledge the risk and potential of Alphabet Inc. (NASDAQ:GOOG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Alphabet Inc. (NASDAQ:GOOG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Alphabet Inc. (NASDAQ:GOOG) and shared a list of blue-chip stocks Jim Cramer is crazy about. In addition, please check out our hedge fund investor letters Q2 2026 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.
