Dan Sundheim’s D1 Capital buys AI-linked names in third quarter
Hedge fund D1 Capital started new positions in some stocks tethered to artificial intelligence during the third quarter, a new securities filing shows. According to the filing, Daniel Sundheim’s fund bought shares of key technology names that have carried the bull market to new heights in recent months, namely “Magnificent Seven” members Nvidia and Meta Platforms . The fund also began a stake in software stocks Broadcom and Synopsys . While none of the four were among the fund’s top 10 equity positions, Broadcom was ranked the highest out of them in the fund at more than $220 million, per data from InsiderScore. Meta was closely behind that at more than $199 million, followed by Nvidia and Synopsys at $115 million and more than $77 million, respectively. The AI trade has been experiencing a volatile November as investors have become worried about those in the play having “really stretched” valuations and whether a bubble is forming . Month to date, all of the four stocks are solidly in negative territory. Synopsys has fallen 14% this month, while Broadcom has dropped more than 7%. Nvidia and Meta have both seen losses of around 6% thus far. NVDA mountain 2025-11-01 Nvidia, month-to-date Beyond those new positions, the fund increased its stake in Applovin , upping its shares by 5.9% to holdings of more than $601 million. That’s the second-highest position for the fund. Applovin has pulled back more than 12% month to date. The fund increased its holdings of another tech stock: Reddit . That position was hiked by roughly 5% to more than $465 million, putting it among the top five of the fund. Earlier this year, the social media company launched new AI-powered advertising tools , a move that boosted the stock. Shares have outperformed the S & P 500 year to date, rising more than 18% compared with the broad market index’s rise of more than 14%. Instacart held the top spot out of the fund’s positions, with a value of more than $829 million. Notably, Sundheim serves on the online grocery delivery company’s board. However, the fund decreased its stake in a few financial stocks, specifically Bank of America , Capital One Financial and Apollo Global Management . Bank of America saw its position drop by more than 30% to a value of $285 million, while the fund’s position in Capital One was reduced by more than 15% to more than $208 million. Its holding of Apollo dwindled by around 18% to stand at more than $154 million. Sundheim started D1 in 2018 and had previously worked at Viking Global Investors, where he spent 15 years of his career.
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