Liontrust GF Global Alpha Long Short Fund on Cloudflare Inc.
Thesis
Cloudflare is an existing long holding that contributed positively during the quarter. Liontrust highlights its role in edge computing, data security and the delivery of AI-enabled applications. The company's positioning is consistent with the fund's preference for infrastructure and software platforms showing tangible AI-related demand. Continued growth in the application layer is important to the thesis because it helps justify spending on the underlying AI systems.
“the company’s role in edge computing, data security and the delivery of AI-enabled applications.”
Key risks
- Higher bond yields put pressure on long-duration growth valuations.
- AI monetisation may fall short of the investment supporting the infrastructure buildout.
- A slowdown in hyperscaler spending growth could weaken demand across the ecosystem.