Key Takeaways
- • L1 Long Short Fund reported updated net tangible asset (NTA) backing as of June 3, 2026, with NTA before tax at $4.1878 per share as of May 6, 2026, and NTA after tax reaching $4.220–$4.490 per share in late May 2026, demonstrating active portfolio management in a volatile market environment.
- • Top-ranked investor James Foord downgraded Micron Technology from Buy to Sell after the semiconductor stock surged 278% year-to-date and 945% over the past year, citing deteriorating AI spending momentum, supply-demand shifts in memory markets, and stretched technicals as primary concerns.
- • Foord's downgrade signals a strategic pivot on the AI supercycle narrative, arguing that while corporate AI investment remains robust, profitability questions are emerging—citing examples such as Uber questioning AI ROI and Microsoft scaling back internal AI coding tool usage due to consumption levels.
- • High-bandwidth memory (HBM) pricing pressures are expected to intensify, as the tight supply-demand imbalance that benefited Micron may not persist, introducing downside risk to the memory sector's margin profile.
- • The fund's positioning reflects macro caution alongside sector-specific concerns, with performance tracking against a backdrop of evolving corporate AI deployment strategies and macroeconomic headwinds.
Summary
L1 Long Short Fund Limited reported its updated net tangible asset backing per share as of June 3, 2026, with NTA before tax standing at $4.1878 as of May 6, 2026. Subsequent valuations reflected NTA after tax in the range of $4.220 to $4.490 per share as of late May 2026, signaling active repositioning within the fund's long and short portfolio amid shifting market dynamics.
The fund's latest NTA disclosure coincides with a significant strategic call within its investment thesis. James Foord, a top-2% ranked investor on TipRanks, downgraded Micron Technology (NASDAQ: MU) from Buy to Sell, citing valuation exhaustion and deteriorating fundamental conditions. Micron shares have appreciated 278% year-to-date and 945% over the past 12 months, driven largely by consensus expectations of an AI-driven memory "supercycle." Foord, who had previously indicated he would exit at $1,000 per share in 2026, executed this thesis as the stock reached his target price.
The downgrade rests on multiple pillars: weakening AI spending momentum, evolving memory supply-demand dynamics, macroeconomic pressures, and stretched technical valuations. Foord notes that while aggregate corporate AI investment remains elevated, early signs of caution are materializing. Companies including Uber have begun questioning the profitability of AI expenditures, while Microsoft has reportedly reduced internal usage of certain AI coding tools due to consumption levels, suggesting peak AI adoption may be approaching or shifting in character rather than sustaining linear growth.
A critical structural concern involves high-bandwidth memory (HBM) pricing. Micron has benefited materially from tight HBM supply relative to demand, supporting premium pricing and margins. Foord's analysis suggests this imbalance may not persist, exposing the stock to margin compression as supply-demand dynamics normalize. Combined with macroeconomic headwinds and valuation extension, this technical and fundamental deterioration prompted the downgrade.
The fund's updated NTA and the timing of this high-profile positioning shift reflect the complexities institutional investors face navigating the AI narrative. While the supercycle thesis remains influential, tactical and strategic risk management—exemplified by Foord's disciplined profit-taking—continue to inform long-short fund allocation decisions.
The fund's latest NTA disclosure coincides with a significant strategic call within its investment thesis. James Foord, a top-2% ranked investor on TipRanks, downgraded Micron Technology (NASDAQ: MU) from Buy to Sell, citing valuation exhaustion and deteriorating fundamental conditions. Micron shares have appreciated 278% year-to-date and 945% over the past 12 months, driven largely by consensus expectations of an AI-driven memory "supercycle." Foord, who had previously indicated he would exit at $1,000 per share in 2026, executed this thesis as the stock reached his target price.
The downgrade rests on multiple pillars: weakening AI spending momentum, evolving memory supply-demand dynamics, macroeconomic pressures, and stretched technical valuations. Foord notes that while aggregate corporate AI investment remains elevated, early signs of caution are materializing. Companies including Uber have begun questioning the profitability of AI expenditures, while Microsoft has reportedly reduced internal usage of certain AI coding tools due to consumption levels, suggesting peak AI adoption may be approaching or shifting in character rather than sustaining linear growth.
A critical structural concern involves high-bandwidth memory (HBM) pricing. Micron has benefited materially from tight HBM supply relative to demand, supporting premium pricing and margins. Foord's analysis suggests this imbalance may not persist, exposing the stock to margin compression as supply-demand dynamics normalize. Combined with macroeconomic headwinds and valuation extension, this technical and fundamental deterioration prompted the downgrade.
The fund's updated NTA and the timing of this high-profile positioning shift reflect the complexities institutional investors face navigating the AI narrative. While the supercycle thesis remains influential, tactical and strategic risk management—exemplified by Foord's disciplined profit-taking—continue to inform long-short fund allocation decisions.
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