Hedge Fund Sells Alphabet After Shares Top Intrinsic Value by 10%
Pelican Bay Capital’s Concentrated Value Strategy delivered an 8.5% return in Q4 2025 versus the Russell 1000 Value Index’s 3.8%, driven by AI-related stocks including Alphabet. The firm sold its GOOG position after shares topped $331.33—10% above its intrinsic valuation—citing overoptimistic market pricing.
1. Pelican Bay Q4 Performance
Pelican Bay Capital Management’s Concentrated Value Strategy returned 8.5% in the fourth quarter of 2025, significantly outperforming the 3.8% gain of the Russell 1000 Value Index. The outperformance was attributed primarily to AI-related equities and commodities exposures.
2. GOOG’s Contribution and Metrics
Alphabet was among the top five contributors for a second consecutive quarter, with its shares closing at $331.33 on February 5, 2026, and a market capitalization of $4.008 trillion. The stock has rallied 77.05% over the past 12 months and delivered a 0.67% one-month return.
3. Decision to Exit Position
Pelican Bay sold its GOOG holding after the share price exceeded the top end of its estimated intrinsic value range by more than 10%. The firm redeployed proceeds into new investments, emphasizing disciplined valuation-based selling even for high-quality compounders.