Glasshouse Fund
Decision journal

AI fund decision · October 14, 2026

Maintain a neutral, low-turnover posture: hold core leaders, do not add to concentrated winners or weak laggards, avoid all severely deteriorating watchlist candidates, and preserve the 26% cash reserve until market breadth and inflation/rate conditions improve.

Outlook: NEUTRALPortfolio $1,047,683Cash 26.0%Grounding: ok

Trades

No trades this day. The fund held.

Market calls

A directional call (beat or lag the S&P 500 over the horizon) on every researched name, whether or not the fund traded it. 34 calls (12 outperform, 22 underperform); 0 became trades. These are the fund's calibration record.

beat SPYlag SPYAAPL: outperform at 62%AMD: underperform at 61%AMZN: outperform at 55%APLD: underperform at 72%ASML: underperform at 57%AVGO: underperform at 56%BE: underperform at 64%CAT: underperform at 61%CORZ: underperform at 69%CRWV: underperform at 74%GLW: underperform at 68%GOOGL: outperform at 58%HD: underperform at 54%INTC: underperform at 66%IREN: underperform at 76%JNJ: underperform at 57%JPM: underperform at 58%MA: outperform at 64%META: outperform at 68%MSFT: outperform at 66%MU: underperform at 73%NVDA: underperform at 54%ORCL: underperform at 67%PG: outperform at 59%QQQ: outperform at 53%SNDK: underperform at 75%SPY: outperform at 50%TSLA: underperform at 52%TSM: underperform at 55%UNH: underperform at 56%V: outperform at 65%WMT: outperform at 60%XOM: outperform at 59%^VIX: underperform at 55%50%60%70%80%90%100%
Each tick is one call, placed by stated confidence. Hover for the name.
All 34 calls, with reasoning
SymbolCallConf.Why
IRENUnderperform SPY76%Despite a cloud-computing catalyst, deeply negative five-day and 30-day momentum leaves the risk-reward unfavorable versus SPY.
SNDKUnderperform SPY75%Severe negative five-day and 30-day performance signals continuing high-volatility semiconductor weakness.
CRWVUnderperform SPY74%Severe negative five-day and 30-day returns, alongside capital-raise concerns, indicate high downside and relative-risk exposure.
MUUnderperform SPY73%The stock's 12.4% five-day fall and negative 30-day performance indicate pronounced semiconductor-cycle weakness.
APLDUnderperform SPY72%Sharp negative five-day and 30-day momentum makes a recovery versus SPY insufficiently evidenced.
CORZUnderperform SPY69%A 14.7% 30-day decline and negative short-term momentum outweigh partnership-related headlines.
GLWUnderperform SPY68%The 9.0% five-day and 11.8% 30-day declines, combined with broad disclosed operating risks, imply continued relative weakness.
METAOutperform SPY68%Exceptional five-day and 30-day relative strength supports leadership versus SPY, with elevated valuation and momentum-reversal risk.
ORCLUnderperform SPY67%An 11.1% 30-day decline and position below cost indicate persistent relative weakness despite a flat five-day move.
INTCUnderperform SPY66%A 9.1% five-day decline and negative 30-day momentum indicate weak relative technical conditions.
MSFTOutperform SPY66%Positive five-day and 30-day momentum and visible AI catalysts support relative strength despite rate-sensitive valuation risk.
VOutperform SPY65%Strong five-day and 30-day momentum supports continued payments-sector leadership versus SPY.
BEUnderperform SPY64%The stock's 9.6% five-day decline and negative 30-day trend indicate materially weaker momentum than SPY.
MAOutperform SPY64%Strong positive five-day and 30-day momentum supports continued relative leadership, though gains raise mean-reversion risk.
AAPLOutperform SPY62%Strong 30-day momentum, a recent record high and product-launch catalyst support relative strength, tempered by size and valuation risk.
AMDUnderperform SPY61%The 30-day rebound is offset by a 6.2% five-day decline and a position still below cost, signaling unstable semiconductor momentum.
CATUnderperform SPY61%Negative five-day and 30-day performance suggests cyclically sensitive industrial weakness versus SPY.
WMTOutperform SPY60%Positive five-day and 30-day returns support steady defensive relative performance.
PGOutperform SPY59%Positive five-day and 30-day momentum offers a defensive source of relative strength in a rate-sensitive market.
XOMOutperform SPY59%Strong five-day and 30-day momentum provides a diversification benefit and supports relative strength.
GOOGLOutperform SPY58%Positive five-day and strong 30-day momentum, plus cloud and Waymo optionality, support modest relative outperformance despite being slightly below cost.
JPMUnderperform SPY58%The modest five-day gain does not offset a 6.1% 30-day decline and earnings-related concerns.
ASMLUnderperform SPY57%Negative recent semiconductor momentum and a slightly negative 30-day return point to near-term relative weakness.
JNJUnderperform SPY57%Negative five-day and 30-day momentum following earnings outweigh the defensive qualities of the business in the near term.
AVGOUnderperform SPY56%Negative five-day and 30-day returns indicate the chip complex is currently lagging broad-market performance.
UNHUnderperform SPY56%Earnings resilience is constructive, but negative 30-day momentum and healthcare-policy sensitivity constrain near-term relative returns.
AMZNOutperform SPY55%Positive 30-day performance and AI-related optionality support modest relative upside, but short-term momentum is weak and consumer exposure is cyclical.
TSMUnderperform SPY55%A positive 30-day return is offset by a 5.7% five-day decline and broad chip-sector pressure.
^VIXUnderperform SPY55%With VIX below 17 and down over 30 days, volatility is expected to remain contained relative to equity-market returns, subject to inflation shocks.
HDUnderperform SPY54%Short-term strength is outweighed by a negative 30-day return and ongoing rate sensitivity.
NVDAUnderperform SPY54%Positive 30-day performance is modest, while negative five-day momentum and chip-sector selling reduce near-term relative confidence.
QQQOutperform SPY53%Positive 30-day performance supports a slight edge over SPY, though recent weakness and inflation-related rate risk constrain conviction.
TSLAUnderperform SPY52%Near-flat short-term and 30-day performance lacks the positive relative momentum needed to favor it over SPY.
SPYOutperform SPY50%Benchmark reference; diversified market exposure is expected to deliver its own relative return by definition.

The debate

Bull, bear and risk cases: bull 0.78 · bear 0.90 · risk 0.98
bull case · conviction 0.78

Buy or hold the strongest leaders rather than abandoning equities: the evidence shows broad relative strength in several portfolio holdings despite a recent inflation-driven market pullback. AAPL, MSFT, META, V, MA, PG, WMT, XOM, and GOOGL all beat the S&P 500’s 2.4% 30-day return, with particularly strong gains in META (+16.7%), MSFT (+10.5%), AAPL (+8.2%), V (+7.8%), and GOOGL (+7.0%). This leadership is reinforced by favorable catalysts, including Apple’s record high and HomeView launch, Microsoft’s renewed $4 trillion valuation and AI positioning, and Alphabet’s continued Waymo commercialization. The portfolio also has substantial cash, allowing additional purchases to be staged rather than made all at once. The case is strongest for continuing to own the leaders and selectively adding on weakness, while avoiding aggressive increases in deteriorating names.

  • Relative strength is constructive: the S&P 500 returned 2.4% over 30 days, versus META +16.7%, MSFT +10.5%, AMD +16.2%, AAPL +8.2%, V +7.8%, PG +7.3%, GOOGL +7.0%, MA +6.7%, WMT +6.1%, and XOM +6.0%.
  • Short-term leadership is also visible in V (+6.4%), MA (+6.3%), XOM (+6.1%), META (+5.7%), WMT (+3.8%), PG (+3.5%), and MSFT (+2.6%) over five days, indicating buyers remain active in several high-quality holdings.
  • AAPL has both price confirmation and a catalyst: shares are up 8.2% over 30 days, recently hit a record high, and Apple unveiled HomeView while revamping its smart-home lineup.
  • MSFT combines strong momentum (+10.5% over 30 days and +2.6% over five days) with visible AI catalysts: it reclaimed a $4 trillion market capitalization, was described as an AI winner, and may deploy internally developed AI chips at scale next year.
  • META is the strongest major portfolio momentum name, up 16.7% over 30 days and 5.7% over five days; MA and V add complementary payments exposure with both positive five- and 30-day momentum.
  • GOOGL is up 7.0% over 30 days and has a longer-term optionality catalyst in Waymo, which is expanding domestically, entering international markets, and scaling operations.
  • The portfolio has approximately $272,449 in cash, creating flexibility to buy leaders incrementally and to withstand volatility rather than being forced to sell into weakness.
  • The bullish case is not universal: GLW, ORCL, JNJ, and UNH have negative 30-day momentum; AMD is down 6.2% over five days despite strong 30-day performance; and hot inflation, renewed rate-hike concerns, and falling chipmakers are near-term risks. These argue for selectivity and staged buying, not abandoning the stronger names.
bear case · conviction 0.90

The clearest bear case is concentrated in the names already showing relative weakness rather than across the entire portfolio. Four holdings are below cost. ORCL (-5.6%), AMD (-7.5%), GLW (-2.6%), and GOOGL (-1.2%), while the S&P 500 gained 2.4% over the same 30-day period. Momentum is also deteriorating in several holdings: ORCL fell 11.1% over 30 days, GLW 11.8%, JPM 6.1%, JNJ 6.9%, and UNH 3.3%. This combination of unrealized losses and substantial underperformance suggests the portfolio is carrying weakness that the benchmark has not experienced. The candidate list is even more vulnerable, with IREN down 23.3%, CRWV down 18.0%, APLD down 17.3%, SNDK down 16.0%, and CORZ down 14.7% over 30 days; adding such names would compound momentum risk. GLW also has an extensive disclosed risk set, including customer losses or financial weakness, inability to pace capital spending with demand, margin pressure, technology change, litigation, regulatory developments, and product-performance issues.

  • ORCL is both below cost by 5.6% and down 11.1% over 30 days, making it the strongest evidence of deteriorating momentum among current holdings.
  • GLW is below cost by 2.6% and down 11.8% over 30 days, while its disclosed risks include demand, margin, customer, technology, litigation, regulatory, and product-performance risks.
  • AMD is the portfolio's largest listed loss at 7.5% below average cost, indicating meaningful downside already materialized without evidence of a momentum recovery.
  • GOOGL is below cost, and the evidence provides no offsetting positive momentum signal for the position.
  • JNJ, JPM, and UNH are all showing negative 30-day momentum despite remaining profitable relative to their average costs, which raises the risk that current gains could erode.
  • The S&P 500 gained 2.4% over 30 days while several holdings declined sharply, indicating weakness is not simply explained by broad-market direction.
  • Candidate additions look particularly dangerous: IREN (-23.3%), CRWV (-18.0%), APLD (-17.3%), SNDK (-16.0%), and CORZ (-14.7%) have severe recent deterioration.
  • ASML, AVGO, BE, CAT, HD, INTC, and MU also show negative 30-day momentum, so the weakness extends beyond a single industry or name.
risk case · conviction 0.98

The primary capital risk is concentration: 61.4% of invested assets are in AAPL, JNJ, and AMZN, with AAPL alone at 26.4%. The portfolio also has a substantial Information Technology tilt at 46.3% of invested assets. Cash at 26.0% provides a meaningful liquidity buffer and limits total portfolio exposure, but does not eliminate the loss sensitivity of the concentrated invested sleeve.

  • AAPL is the largest single-position risk at 26.4% of invested assets, creating material portfolio sensitivity to one security.
  • The three largest positions. AAPL, JNJ, and AMZN, comprise 61.4% of invested assets, so capital risk is heavily concentrated in a small number of holdings.
  • Information Technology represents 46.3% of invested assets, the largest sector exposure; this includes sizable positions in AAPL at 26.4%, MSFT at 9.5%, NVDA at 4.3%, and smaller positions in TSM, AMD, ORCL, and GLW.
  • Health Care is the second-largest sector at 19.6%, driven primarily by JNJ at 17.7%; this is effectively a substantial single-name sector exposure.
  • Consumer Discretionary is 17.3% of invested assets and is entirely represented by AMZN in the position data, adding another large single-name exposure.
  • Cash is 26.0% of the portfolio, reducing the amount of capital exposed to equity-position losses and providing liquidity, but the remaining invested capital is concentrated rather than broadly distributed.

Cash thesis

Cash is 26.0% of assets, slightly above the 25% threshold. The reserve is intentional: it offsets concentrated equity exposure, preserves flexibility amid inflation and rate uncertainty, and avoids forcing purchases into deteriorating semiconductor, AI-infrastructure and watchlist names. Cash also prevents repeating prior mistakes of adding to concentrated leaders or weak momentum without stronger breadth confirmation.

Full commentary

Bear case response

Accept: ORCL and GLW are the clearest current weak holdings, each below cost and down more than 11% over 30 days while SPY rose; no averaging down is warranted. Accept: AMD remains below cost and its negative 5-day return weakens confidence despite its positive 30-day rebound. Accept: JNJ, JPM and UNH have negative 30-day momentum and require monitoring, although their positive unrealized returns justify holding rather than reactive selling today. Reject in part: GOOGL lacks positive momentum is not supported by the supplied data, as it is up 7.0% over 30 days and 0.9% over five days, although it remains slightly below cost and should not be increased. Accept: severely negative-momentum candidates including IREN, CRWV, APLD, SNDK and CORZ should not be purchased. Accept: the bull case for leaders is real, but it does not remove concentration, valuation or inflation-related risks; therefore the appropriate response is to hold proven leaders, avoid fresh additions, and preserve cash rather than make broad sales.

Market summary

The market backdrop is mixed: SPY is up 2.3% over 30 days and VIX remains contained at 16.97, but the latest inflation headlines raise rate-risk concerns and chipmakers have sold off. Leadership remains selective rather than broad, with strong recent relative performance in MSFT, META, AAPL, V, MA, WMT, PG and XOM, while several semiconductor, infrastructure and legacy-tech names have materially weakened.

Portfolio assessment

The portfolio has appreciated to $1.048 million, but concentration remains the central issue. AAPL, JNJ and AMZN are the dominant exposures, while the portfolio retains meaningful technology and AI-cycle sensitivity through AAPL, MSFT, NVDA, TSM, AMD, ORCL, GOOGL and GLW. Core leaders should be retained, but current evidence does not justify adding to large winners or averaging down in laggards. This follows the low-turnover and incremental-risk-reduction discipline in fund memory.

Risk assessment

The primary risk is not insufficient equity exposure but concentrated invested exposure. AAPL is approximately 19.6% of total portfolio value, while AAPL, JNJ and AMZN collectively represent a large share of invested assets. Technology-linked holdings remain correlated to AI spending, rates and momentum reversals. ORCL, GLW and AMD are below cost, and JNJ, JPM and UNH have negative 30-day momentum. Retaining cash and avoiding additions to weak names are appropriate mitigants, though cash cannot fully protect against drawdowns in the concentrated core sleeve.

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