economy
February 17, 2026
Hedge fund manager Rob Citrone is short U.S. stocks. Here's why
The Discovery Capital Management founder and portfolio manager said capital expenditures on AI are risks to major U.S. companies.
TL;DR
- Rob Citrone, a billionaire hedge fund manager, is shorting the U.S. market and favoring international equities.
- He cited the high valuation of U.S. stocks, which trade at a 40% premium to the rest of the world, as a primary concern.
- Citrone is also concerned about the uncertain return on investment from high capital expenditures, largely driven by AI and data center investments.
- He prefers emerging markets where companies may have more protection from competition and AI risks.
- Mexico is his top pick due to its strong ties with the U.S. and low company valuations.
- Argentina is also seen as having upside potential due to anticipated government policy reforms.
- Citrone remains short digital asset treasury companies, viewing them as a better short opportunity than Bitcoin itself.
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