Keep pulling the thread on Dan Sundheim.
D1 Capital has approximately $25 billion in assets under management (AUM), with about two-thirds in private companies and $10 billion in public companies.
D1 Capital's hiring strategy for investment professionals almost exclusively targets individuals without prior experience in public equity investing, typically recruiting from private equity.
During the January 2021 short squeeze, D1 Capital experienced short positions increasing by 400% in two weeks without any fundamental changes to the underlying companies.
Dan Sundheim believes the current market presents the best opportunity for short selling in his entire career, but the risk of retail-driven squeezes prevents fully capitalizing on it.
Following the January 2021 GameStop event, D1 Capital ceased all short-selling activities for approximately one year.
Dan Sundheim states that the majority of D1 Capital's investment returns come from multiple expansion, where the market re-rates a company's valuation upwards.
Dan Sundheim predicts a long-term shortage of gas turbines due to conservative capacity planning by manufacturers like Siemens Energy, GE Vernova, and Mitsubishi, who are skeptical of the AI-driven demand surge.
Dan Sundheim predicts that U.S. electricity demand will grow at 4% annually over the next 20 years, a significant acceleration from the previous two decades.
GE Vernova trades at double the enterprise value of Siemens Energy, despite the two companies having nearly identical businesses, revenue, and products.
D1 Capital ceased making new investments in China approximately three years ago.
Dan Sundheim believes investing in China is problematic because the government's significant and often arbitrary influence on resource allocation creates too much uncertainty for capital markets.
A major correction in the AI sector will likely occur when it becomes clear that the returns on investment in training new, larger models are diminishing.