The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

Crossroads Capital LLC, an investment management firm, published its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Fund increased by 11.5% net of fees and expenses during the quarter. Since its founding, the fund has compounded at a net rate of 17.9%.  By the end of June 2026, the fund's overall non-delta-adjusted gross and net exposures were 115.0% and 86.9%, respectively. In Q2, the S&P 500 rebounded 14.9%, its best since 2020, as market uncertainty eased. The oil market showed a transition, with Brent crude prices fluctuating. AI and semiconductors thrived, with 25% earnings growth. The quarter underscored a key principle: risk is priced continuously but resolved discontinuously. Small-cap benchmarks hit new highs, though the Magnificent 7 saw modest gains. In Q2, market activity focused on adjustments rather than facts, capitalizing on high option premiums.  In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Crossroads Capital highlighted Nebius Group N.V. (NASDAQ:NBIS). Nebius Group N.V. (NASDAQ:NBIS) is a technology company focusing on developing full-stack infrastructure to service the global AI industry. On August 19, 2026, Nebius Group N.V. (NASDAQ:NBIS) closed at $223.90 per share. The one-month return of Nebius Group N.V. (NASDAQ:NBIS) was 1.33%, and its shares gained 238.32% over the past 52 weeks. Nebius Group N.V. (NASDAQ:NBIS) has a market capitalization of $60.87 billion.

Crossroads Capital stated the following regarding Nebius Group N.V. (NASDAQ:NBIS) in its Q2 2026 investor letter:

"Eighteen months ago, Nebius Group N.V. (NASDAQ:NBIS) was a Russian-adjacent carve-out of Yandex, the Russian Google, with no anchor customer, a cash burn, and an open question as to whether capital markets would touch it. You had to squint at it in order to see a viable business that was arguably trading below liquidation value. On August 12th, the company reported a second quarter with $582.3 million in revenue and a 50% adjusted EBITDA margin in its core AI cloud business. Today Nebius is an AI infrastructure platform with roughly $46B of committed contract value from Microsoft and Meta, priority Nvidia silicon secured through Nvidia's own $2B equity stake, and a target of almost 5 GW of contracted power by year-end(with over 75% of it owned rather than leased). Moreover, it has a funding structure in which roughly 50-60% of capex is covered by customer prepayments; the balance was raised this spring as $4B of oversubscribed convertibles with coupons of 1.25% and 2.625%. Sub-1.3% paper to 2031 is the bond market's answer to any question regarding Nebius' long-term prospects—and a question we couldn't have fully answered a year ago at any price.

The Meta relationship remains the keystone: $27B over five years, split between $12B of dedicated capacity on one of the first large-scale Vera Rubin deployments (starting early 2027) and $15B on which Meta backstops Nebius's uncommitted third-party capacity as it comes online. That second piece turns Meta into a floor buyer for capacity that Nebius was going to build anyway, and collapses demand risk on the entire program..." (Click here to read the full text)

Nebius Group N.V. (NASDAQ:NBIS) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Nebius Group N.V. (NASDAQ:NBIS) at the end of the first quarter, which was 54 in the previous quarter. While we acknowledge the potential of Nebius Group N.V. (NASDAQ:NBIS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Nebius Group N.V. (NASDAQ:NBIS) and shared Michael Burry's bearish stance on the stock, while ChatGPT presented a more optimistic view. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. This article is originally published at Insider Monkey.