Just launched my new Substack. Follow along for daily notes, insights and the pinned portfolio. open.substack.com/pub/master…

I’ve had a number of conversations with folks inside and outside government about the current situation with Anthropic, and here is what I believe to be true: — As we know, Anthropic publicly released its Mythos class models earlier this week under the commercial name Fable. — Fable is Mythos with guardrails. But if those guardrails fail, then you’ve exposed Mythos and its advanced cyber capabilities to people who shouldn’t have them. (Keep in mind that Anthropic itself widely promoted the idea that Mythos was a cyberweapon and needed to be regulated as such. They asked for government regulation of Mythos and championed the guardrails on Fable. If there is a vulnerability — big or small — it is Anthropic’s responsibility to patch.) — A highly credible trusted partner of both Anthropic and the USG who was testing Fable came forward with a jailbreak of those guardrails. The Admin asked Dario to fix the jailbreak or de-deploy the model. Dario refused. — In their blog post, Anthropic defended its decision by saying the jailbreak isn’t serious. That is not what the trusted partner and the USG believe; nor is that kind of minimizing language consistent with Anthropic’s brand as the AI safety company. It’s difficult to fathom how they could claim a jailbreak allowing operability of a cyber weapon could be defined as not “serious.” — In the past, Anthropic has always said that safety must be top priority and taken super seriously. In this case, Anthropic prioritized the continued offering of the consumer model over safety. — In reaction, the Admin issued the export control. The Admin did this reluctantly. It’s been very surprised that Anthropic hasn’t wanted to cooperate with a reasonable safety request (ie fixing the jailbreak issue). Anthropic’s reaction is very much at odds with their branding and ethos as a safe AI research community. — The Admin’s hope now is that Anthropic remediates the safety issue, the export control is lifted, and Fable goes back into general release. The Admin wants all of this to happen as soon as possible. It is frankly bewildered that Anthropic hasn’t wanted to comply with safety requests that it previously said were its highest priority. — Those trying to misdirect and tie this action to the prior DoW/Anthropic issues are wrong. The Admin values Anthropic’s technical capabilities and feels that this issue, while serious, should be easily resolved. The ball is in Anthropic’s court.

$RDDT CEO: "we're seeing it now that the paradox of AI, which is AI, as we know, it doesn't exist without Reddit, right? Reddit is used pretraining, post-training, grounding, search. So Reddit is an essential player in the modern version of the Internet"

It’s like the DNC talking points went out this AM and every economically illiterate politician is our rabble rousing and blaming poverty caused in part by government ineptitude in operating schools on innovators. Brad I disagree with you on one point—Ro is not smart.

SOURCES: ANTHROPIC WILL RELEASE THE PUBLIC VERSION OF MYTHOS TOMORROW

Friday's selloff got all the attention. Today's close was more important. After one of the sharpest declines we've seen in months, the question wasn't whether stocks could bounce. Markets often bounce after big down days. The question was whether they could hold. That's the distinction most investors miss. Throughout today's session I wasn't focused on headlines, earnings, or analyst upgrades. I was focused on one level: Friday's lows. If those broke, the correction likely had further to run. If they held, the odds increase that Friday was simply a violent reset inside an ongoing bull market. By the closing bell, we had our first clue. The market passed its initial test. That doesn't mean the correction is over. It doesn't mean new highs are next. It simply means buyers showed up where they needed to. Inside today's Portfolio Update, I break down: • Why Friday's lows mattered more than today's gains • The surprising weakness showing up in several Magnificent Seven names • What Reddit's reaction after missing S&P 500 inclusion may be telling us • Why Apple's latest AI announcement received such a lukewarm response from investors • The single question I'm watching most closely heading into CPI, Oracle earnings, and SpaceX pricing The story didn't change. But the market may have just told us something important about the road ahead. open.substack.com/pub/master…

$NVDA is the "safe short." Same framing preceded Amazon's and Google's breakouts. Dan Loeb, Third Point ($30B AUM), on @theallinpod: the stock's persistent discount isn't a fundamental ceiling. It's crowded short mechanics. Long/short pods must carry a short book. At $5 trillion, $NVDA is the obvious answer - large enough to absorb notional, with a long run that gives narrative cover. That structural pressure is what suppresses the stock. Loeb's call: undervalued on 2-3 year forward earnings. When fundamentals force a re-rate, the short unwind will be faster than a fundamental re-rate alone. Google was a "safe short." Amazon was a "safe short." Both broke out. Full NVIDIA analysis homebuilder short: podcastalpha.substack.com/p/… Source: All-In Podcast - youtube.com/watch?v=i8OI8CNd…

After a 9-week rally, the market finally demanded some maintenance. We raised cash. We cut losers. We trimmed winners. We honored stops. That's not bearish. That's portfolio management. The goal isn't maximizing every dollar of upside. The goal is staying in the race.

Knicks in 4

For the last two years, AI meant semiconductors. This morning the market is asking a different question: What if the next winners are the applications built on top? Software has now been bid for four straight sessions following Nvidia's COMPUTEX commentary. Oil is rising. Yields are firm. Geopolitics remains messy. Yet capital continues moving deeper into the AI ecosystem. The story didn't change. The lane did. Full Daily Drive out now complimentary to all. open.substack.com/pub/master…

"It's 1992 not 1999. AI is so much bigger than the internet." As $ARM surges once again - now comfortably the biggest UK company ($375bn mkt cap) - resharing this compelling conversation we had with CEO @ReneHaas237 from January on The Master Investor Podcast. The stock has more than trebled since then! SHIFT TO CPUs v GPUs: "When we look at the trajectory of the CPU in the data centre, we have a very, very good sense that's just going to continue to increase." CHINA: "The US actually has a lot of energy. But one thing China is much better at the US is building things really fast and moving through a lot of red tape. They just decide to build it and then it's done." UK: Has fantastic talent, but..."there definitely is less appetite for risk and maybe that comes from less of an appetite for failing." HYPERSCALERS: “Scale matters. I think one thing that may be a little different this time is that the past winners may still be the next set of winners just because of the size of their scale.” Timestamps: 0:00 - Intro 3:10 - The most important company in the UK 4:30 - What exactly does @Arm do? 7:25 - The origins of Arm - Innovation 9:38 - UK as a home for innovative talent 11:04 - What UK lacks - appetite for risk 13:21 - The pros & cons of Arm’s revenue model 16:26 - Will Arm design chips from start to finish themselves? 17:39 - Balancing relationships with likes of OpenAI v Nvidia $NVDA v Apple $AAPL v Microsoft $MSFT 19:55 - Who is the greatest innovator alive today? 21:40 - The critical role Arm played in the iPhone 24:12 - The coming shift from GPUs to CPUs; & more AI done locally vs in data centres 27:21 - Is AI trade over done? 30:50 - It’s only 1992: “AI is so much bigger than the internet” 33:46 - China vs US 36:18 - Big believe in open markets 37:56 - Scale matters 39:15 - How do you inspire repeat innovation? 40:51 - Underinvestment in semiconductors for decades 42:18 - Importance of great communication 44:10 - Advice for young people in this new world

The software bid which essentially started 4 sessions ago looks to me like insititutiuonal accumulation rather than extended retail trading. $RDDT $NOW $PLTR $APP.

Master Hedge Deep Dive: May 31, 2026 open.substack.com/pub/master…

The market isn't abandoning AI. It's broadening. For months, nearly all traffic flowed through the same crowded lanes. Now we're seeing new sectors attracting capital. The road is still open. The market is just calculating a new route. Today's Portfolio Update 👇 open.substack.com/pub/master…

$AVAV the DeMark was a BUY9/13 earlier this month. Then the fundies kicked for a perfect combination BUY.

Today’s morning drive: open.substack.com/pub/master…

🚨 | Luca Cordero di Montezemolo on the new Ferrari Luce: "If I said what I really think, I'd harm Ferrari. We're risking the destruction of a myth, I'm very sorry about that. I hope they at least remove the Prancing Horse from that car"

The rally is back on. AI infrastructure, satellites, semis, nuclear, power are all ripping higher again. But oil is rebounding, missiles are still flying around Hormuz, and the SpaceX sympathy trade is getting crowded fast The road still looks open. It's just that the smoke on the horizon never disappeared. Today’s Daily Drive 👇 open.substack.com/pub/master…