SaltLight Capital Management's Updates on Its Recent Investment in Alphabet (GOOGL)

SaltLight Capital, an investment management company, has released its “SaltLight SNN Worldwide Flexible FR Fund” Q2 2025 investor letter. A copy of the letter can be downloaded here. The Fund generated a return of +24.52% in the second quarter of 2025, and the cumulative return since inception was 119.28%. At the end of June, the firm had 38% allocated to the US and continues to find opportunities in South Africa, China, and Southeast Asia. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, SaltLight Capital highlighted stocks such as Alphabet Inc. (NASDAQ:GOOGL). Alphabet Inc. (NASDAQ:GOOGL) is a leading technology company that provides various products and platforms. The one-month return of Alphabet Inc. (NASDAQ:GOOGL) was 15.10%, and its shares gained 57.43% of their value over the last 52 weeks. On September 08, 2025, Alphabet Inc. (NASDAQ:GOOGL) stock closed at $234.04 per share, with a market capitalization of $2.831 trillion.

SaltLight Capital stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its second quarter 2025 investor letter:

"To illustrate our approach to navigating these uncertainties, we turn to our recent investment in Alphabet Inc. (NASDAQ:GOOGL), which exemplifies balancing innovation risks with established strengths.

Innovator’s Dilemma: Google is grappling with an Innovator’s Dilemma as it protects its $200 billion search business from a significant technological shift. To put it plainly, Google Search’s primary purpose is to act as a ‘match-maker’, guiding users to the best source for their query on the open web. However, artificial intelligence is changing this role, with AI handling much of the searching, synthesis, and answering for the user, reducing the need to visit destination websites to gather information. A natural tension is emerging.

Humans naturally gravitate towards the path of least resistance, increasingly depending on AI to undertake cognitive tasks for them. This development poses challenges for content providers and for Google itself, which derives advertising revenue from these interactions..." (Click here to read the full text)

Alphabet Inc. (NASDAQ:GOOGL) is in 4th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 219 hedge fund portfolios held Alphabet Inc. (NASDAQ:GOOGL) at the end of the second quarter, which was 227 in the previous quarter. While we acknowledge the potential of Alphabet Inc. (NASDAQ:GOOGL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Alphabet Inc. (NASDAQ:GOOGL) and shared the list of exciting AI stocks to watch. In addition, please check out our hedge fund investor letters Q2 2025 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.