Recent regulatory disclosures reveal hedge fund managers’ significant exposure to large enterprise software firms at the start of 2026, amid a sharp sell-off driven by AI-driven valuation concerns.
Hedge fund portfolios revealed in recent regulatory filings show which managers were most exposed to large enterprise software firms as the sector came under heavy selling pressure early in 2026.
The filings indicate Brennan Diaz’s Fernbridge Capital, a stock‑picking firm overseeing roughly $2 billion, began the year with outsized allocations to two cloud software names. Salesforce was the fund’s single largest holding, representing more than 22% of the portfolio, while Workday accounted for nearly 15% at the start of 2026, according to data compiled from 13F disclosures reported by Insider. Both equities have tumbled by more than 25% since the calendar turned, amplifying losses for concentrated holders.
Diaz, who previously worked at Viking Global and launched Fernbridge in 2019, was one of several managers who boosted software bets late last year. Contour Asset Management, led by former Brummer & Partners portfolio manager David Meyer, initiated positions in Salesforce and Workday during the fourth quarter of 2025, making Salesforce one of its top holdings as 2026 began, filings show.
ValueAct, the long‑running activist investor, also entered the year heavily positioned in Salesforce; the stock made up more than 11% of its reported portfolio and the firm increased its stake in the fourth quarter. According to the filings, Mason Morfit, ValueAct’s chief investment officer, sits on Salesforce’s board.
Other managers redirected capital into different parts of the software and enterprise technology complex. Sean Ma, who founded M37 Management after leaving Hong Kong‑based Snow Lake Capital and relocating to California, bought 100,000 shares of Oracle in the fourth quarter, making it his firm’s second‑largest holding at the outset of 2026, filings show.
Not all funds were positioned for a rally. Kirkoswald’s Glen Coffey placed a substantial bearish wager on Oracle by purchasing put options valued at roughly $400 million during the fourth quarter, regulatory records indicate. Put contracts give holders the right to sell shares at a predetermined price and are commonly used to profit from or hedge against declines. It is not clear from the filings how long those option contracts run or whether they have been closed, and Kirkoswald declined to comment.
Market activity around Oracle’s options market at the start of February underscored elevated investor interest in downside protection. Exchange data and options trackers showed heightened volume in put trading, and options listings made new expiry series available in January and February 2026, according to Nasdaq and options quote data reviewed by American Banking News and ADVN FN.
The concentration of software exposure among hedge funds followed months of investor debate about how generative artificial intelligence would reshape enterprise software demand and margins. Industry data and fund filings suggest a split between managers who added to large, established software franchises and those who pared or positioned against them. According to analysis of 13F filings by InsiderMonkey and fintech research on Fernbridge’s holdings, the fourth quarter of 2025 was a period of re‑weighting for several managers.
The funds named in the filings did not provide comment when approached. The patterns revealed by the disclosures illustrate how a relatively rapid reassessment of AI’s implications , and fears that the technology could compress software valuations , have prompted sizeable portfolio shifts among some of the industry’s more prominent active managers.
- https://news.google.com/rss/articles/CBMid0FVX3lxTE05VmgyUkJ0V042MlZHMmw5R21IdUo0M3R1ckNTSDVqeEVfcmp0NjBHSEEzMWRqbnlMUmlCaUJQamNVaEVHTS1XUmVRRjFQWWhKaDVaMDVzRzVVZ3RuSnBrd1d6S3BjWHJNZnJXQ2FrTFlfNWZESVFV?oc=5&hl=en-US&gl=US&ceid=US:en – Please view link – unable to able to access data
- https://www.aol.com/news/hedge-fund-filings-reveal-managers-121901354.html – An article detailing how hedge fund filings reveal which managers were exposed to software stocks at the start of 2026, highlighting Fernbridge Capital’s significant holdings in Salesforce and Workday, and Kirkoswald’s substantial bet against Oracle through put options.
- https://www.insidermonkey.com/hedge-fund/fernbridge%2Bcapital%2Bmanagement/1303/holdings/ – A report on Fernbridge Capital Management’s 13F holdings, showing their top positions in Salesforce Inc. and Workday Inc., with significant increases in these holdings during the fourth quarter of 2025.
- https://www.fintool.com/app/research/funds/hedge-funds/fernbridge-capital-management-lp – An analysis of Fernbridge Capital Management’s Q2 2025 13F filing, highlighting their increased investments in Salesforce Inc. and Workday Inc., and their overall portfolio composition.
- https://www.advfn.com/options/NYSE/ORCL/ORCL260206P00185000/quote – A detailed quote for Oracle Corporation’s February 6, 2026, 185 Put option, illustrating the trading activity and market interest in Oracle’s stock during that period.
- https://www.nasdaq.com/articles/january-2026-options-now-available-oracle-orcl – An announcement about the availability of new January 2026 options for Oracle Corporation, including details on put and call contracts and their potential implications for investors.
- https://www.americanbankingnews.com/2026/02/07/investors-buy-high-volume-of-oracle-put-options-nyseorcl.html – A report on the unusually high volume of put options traded for Oracle Corporation on February 6, 2026, indicating increased investor interest in betting against Oracle’s stock.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
7
Notes:
The article presents recent regulatory filings indicating hedge funds’ positions in Salesforce and Workday. A similar report was published on February 21, 2026, by Business24.ro, suggesting the content may be recycled. ([business24.ro](https://business24.ro/salesforce/fonduri-acoperire-riscuri-crestere-expuneri-1641606?utm_source=openai)) The earliest known publication date of the substantially similar content is February 21, 2026. The narrative appears to be based on a press release, which typically warrants a high freshness score. However, the presence of similar content elsewhere raises concerns about originality. The article includes updated data but recycles older material, which is a concern. Given these factors, the freshness score is reduced to 7.
Quotes check
Score:
6
Notes:
The article includes direct quotes attributed to various individuals and firms. However, these quotes cannot be independently verified through online searches. No online matches were found for these quotes, raising concerns about their authenticity. Unverifiable quotes should not receive high scores, and due to this uncertainty, the score is reduced to 6.
Source reliability
Score:
5
Notes:
The article originates from a source that is not a major news organisation. The lead source appears to be summarising or rewriting content from a paywalled publication, which is a concern. Given these factors, the source reliability score is reduced to 5.
Plausibility check
Score:
7
Notes:
The article discusses hedge funds’ positions in Salesforce and Workday, which is plausible given recent market trends. However, the lack of independent verification for key claims and the presence of similar content elsewhere raise concerns about the article’s credibility. Due to these issues, the plausibility score is reduced to 7.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents information that is similar to content published elsewhere, raising concerns about originality. Key quotes cannot be independently verified, and the source reliability is questionable due to potential summarisation of paywalled content. Given these issues, the overall assessment is a FAIL with MEDIUM confidence.