Viking Global Investors has acknowledged that its cautious approach to AIt performance in the first half of the year, even as the hedge fund continues to resist chasing companies trading at what it considers excessive valuations, according to a report by Bloomberg.
The firm’s flagship hedge fund gained 2.6% in the first six months of 2026, significantly lagging AI-focused peers including Coatue Management, which was up 24.5%, and Lone Pine Capital, which gained 43%.
Viking told clients that its limited exposure to the AI trade represented a “missed opportunity”. However, co-founder Andreas Halvorsen indicated that the firm had no intention of materially changing its investment discipline in response to the rally.
“Against the current market backdrop, we continue to exercise caution when buying stocks at valuations that, considering our forecast of revenue and earnings, offer little margin of safety,” Halvorsen wrote in a letter to investors this month.
The stance leaves Viking at risk of continuing to underperform more aggressive technology-focused managers if the AI rally extends. At the same time, the firm is positioning itself for protection should enthusiasm around the sector give way to a broader reassessment of valuations and spending.
That debate intensified this week after Alphabet increased its capital expenditure outlook. The Magnificent Seven technology stocks subsequently suffered their sharpest one-day decline since the tariff-related market selloff in April 2025.
Viking’s strategy has historically favoured valuation discipline over momentum during periods of market exuberance. The firm avoided much of the technology boom in 2020 and 2021, helping it escape the double-digit losses suffered by some competitors when the trade subsequently reversed.
The hedge fund, which has around $26bn in assets, has maintained a relatively stable investor base, while Viking’s total assets under management have remained close to $56bn this year.
Approximately one-fifth of the flagship fund’s net exposure is linked to the AI ecosystem, according to the firm. Viking said the majority of its public and private investments remain outside the sector.
The portfolio instead has greater exposure to consumer, financial and industrial companies. Its more limited AI-related positions have nevertheless made a meaningful contribution to returns, with Samsung Electronics, a major semiconductor supplier, identified as the fund’s strongest performer during the second quarter.
