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https://acr-invest.com/commentary/seeing-through-the-ai-haze/
2Q 2026 Commentary
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ACR Alpine
Capital Research

A fundamental valuation-based asset management firm, managing portfolios for financial intermediaries and institutions.

100% employee-owned, our investment philosophy emphasizes broad mandates, deep fundamental research, and focused portfolios.

About

100%

Employee-Owned

All

Cap Strategies

12

Investment Team Members

16

Years+ Average PM Tenure

37

Employees

$12 B

In Assets

Low

Turnover

1999

Founded

5

Strategies

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Valuation Excellence = Investment Success

Newton’s Cradle, its steady rhythm governed by the laws of physics, reminds us of the enduring economics of a successful business. The compounding of cash income over time may not be as exciting as daily price action on blinking red and green screens, but it is the only source of true asset value.

 

  • Fundamental value and risk are our focus when evaluating investments.
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Investment Principles

ACR
Commentary

2Q 2026

Seeing Through the AI Haze

AI hype drove a risk-on market rebound in the second quarter despite ongoing hostilities in the Middle East. Equity market prices continued fluctuating with AI and “value” stocks see-sawing daily. ...

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“The promise and fears associated with AI have in our view created a speculative haze. Epic coding feats are as common as erroneous presentations of fact. ”
“If there was ever a time to cyclically adjust profits, it is today. The most successful companies in the world are pumping over $800 billion of additional capital expenditures into the economy, not only goosing GDP growth, but also converting their costs into the corporate profits of their vendors. The chart which follows this section shows historical trends in earnings and free cash flow per share.”
“Our continued hope is for generative AI and other forms of machine learning to bend the GDP productivity trajectory from a more recent 1-1½% per annum to its historical long-term rate of ~2%. Greater productivity gains will be needed more than ever to maintain overall growth rates in the face of cresting global populations.”
“Teasing out beneficiaries and casualties of the AI revolution is no easy task. As we have pointed out previously, this is an industry-by-industry, company-by-company, and product-by-product analytical exercise.”