Coda shifts short book from AI infrastructure to energy and rates

Coda Global Opportunities, an opportunistic long/short equity fund, shifted its short book away from AI infrastructure in October toward businesses more directly exposed to higher energy prices and interest rates, its managers said.

Peter Andersland and Knut Børsheim built a basket of shorts tied to AI infrastructure spending, including CoreWeave and Caterpillar. They took profits on some positions as the shares fell, according to comments reported by HedgeNordic. Both the long and short portfolios were repositioned in October, with the larger changes on the short side. The managers call the shift away from AI infrastructure “slight.”

Allocators who use Coda as a counterweight to AI exposure now hold a smaller offset: the fund kept multiple AI-infrastructure shorts but now leans toward companies squeezed by higher energy prices and interest rates.

“Several of these investments have declined substantially, bringing share prices closer to our assessment of fundamental value and reducing the potential return from remaining short,” the managers wrote. “Our skepticism regarding the economics of the AI capital expenditure boom has not disappeared, and we retain multiple positions in this area,” they added, saying opportunities “must be assessed against the expectations reflected in current prices rather than those prevailing when positions were initiated.”

CoreWeave, which leases data-center capacity to large technology customers including Microsoft, later rallied after reporting quarterly revenue above Wall Street expectations and raising 2026 sales guidance. The AI-infrastructure debate remains live: as Alternatives previously reported, a Microsoft engineer argued that power and cooling now bind AI data-center clusters.