Bullpen.News From Edwin Dorsey
Get Daily Recap Feedback

Tuesday, September 15, 2026

Back to today

From X

@HaydenCapital

Fred Liu on X

Happy to share our Q4 2025 letter. Especially at a time when the future of internet and software business models are being questioned. In it, we offer our take on: - The "AI Scare Trade". The market is pricing in fear, not facts. These businesses aren't broken (yet), but investors are selling indiscriminately. - What's still investable? Software faces real headwinds - disruption to terminal value assumptions and forced pricing model shifts. But ~80% of a software company's value is trust, reliability, and headache-free solutions. That doesn't disappear overnight. - Network effects are real moats. Gaming, ecommerce, consumer internet - they're all down substantially from highs. But as AI reduces barriers to entry, the barriers to scale go up. Distribution grows more valuable. - Thoughts on $SE, after a -45% drawdown. We don't think the TikTok boogeyman is as scary as the market fears. In fact, the opposite. - New Oriental $EDU exit. Originally bought near net cash, and business has stabilized since. Time to move on. Full letter linked here: https://t.co/0WPoxoHt7t
@HaydenCapital 1 click

Fred Liu on X

AppLovin - Interview with Xiaochuan (architect of $APP's Axon engine). Thought this was the most in-depth public conversation on AppLovin's business to date. (P.S. Youtube has great subtitle translation) Axon & Technical Philosophy - Axon was built by just 5 people in 3 months - AppLovin was the first to implement models with prediction windows exceeding 7 days - Deliberately avoids developing its own LLMs, preferring to use the best available models on the market — building LLMs in-house wouldn't generate the best ROI E-Commerce Expansion - Decision to enter e-commerce made in May 2024, with the product launching later that year; original team was only 10 people - Entering e-commerce was effectively building a new model from scratch - The gaming and e-commerce algorithms share nothing except infrastructure and accumulated organizational experience Core Competency & Culture - AppLovin's edge isn't industry-specific — it's rooted in how the company approaches problems (the culture itself), which he believes positions them to tackle challenges well beyond gaming and e-commerce - His relish for being called an "underdog" comes through clearly throughout the interview Social Media Ambitions - Already working on building a next-generation social media platform - Strategic logic: Meta started with captive organic traffic and built an ad platform on top; AppLovin is doing the reverse - starting with the ad platform and building toward organic traffic - Owning that organic traffic, if achieved, would be a significant advantage Short Seller Response - When the short reports were published, Xiaochuan personally reviewed the systems and code to assess whether the claims had merit Hiring Philosophy - After 2023, overhauled hiring: moved to paying among the highest salaries in Silicon Valley, and shifted focus away from seasoned veterans toward people with fewer than 2 years of experience - Core belief: experience is overrated, the capacity to learn is underrated; breakthroughs come from willingness to abandon convention - "You can't operate like a large company if you don't have a large company's resources" - Most prominent AI researchers are overpriced — high visibility and intense competition drives salaries beyond their marginal value - Targets talent at the "periphery of the spotlight": technically strong but undervalued by the market, and still carrying the underdog mentality that well-known names often lack (i.e. "Moneyball") - Entire engineering org runs on fewer than 100 people https://t.co/vXaWUZGkZt

Investor Letters

All letters

Adobe 3Q26 Update

Adobe’s fiscal 3Q26 revenue grew 13%, while ARR growth slowed to 9.3% excluding Semrush.

ADBE $93B
Speedwell Memos 2 clicks

Owning the Seven PM Slot

Netflix is using AI visual effects and dubbing to cut production costs, expand global distribution and reinforce its recommendation-driven…

NFLX $511B
Bearhold Research 1 click
ZM · long

Zoom Communications INC

Zoom Communications (ZM) is presented as a long investment idea.

ZM $27B
Value Investors Club 2 clicks

Lululemon: The 15-Minute Thesis

Lululemon’s North American sales, margins and legging demand are falling as Alo and Vuori gain share, leaving its brand moat and depressed…

LULU $11B
Hated Moats 2 clicks

The Five Deals That Made Apollo

Apollo Global Management’s five defining deals, from Executive Life to Intel, built a $1 trillion asset manager spanning insurance and…

APO $73B
Net Interest 1 click

In Conversation: NVIDIA

NVIDIA sees inference, agentic workloads and robotics broadening AI compute demand beyond hyperscalers, while high-speed memory shortages…

NVDA $5.4T
Aurelion Research 1 click

Publications we follow

Every publication on this site, hand-picked.

108 publications

Newsletters 91

YouTube 4

Blogs 12

Seeking Alpha 31 of 172

Nominate a publication

X accounts we follow

Every account on this site, hand-picked.

71 accounts
Nominate an account

Investor letters we follow

78 firms

Sectors

Ordered by how often our editor reaches for them.