Hood River’s Labyrinthine Divestment in Applied Digital

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In the annals of the Infinite Holdings Register-where every trade is etched in ink that fades and reappears-a curious transaction has been recorded. Hood River Capital Management, that most meticulous of scribes in the ledger of capital, has reduced its stake in Applied Digital Corporation (APLD +7.43%) by 812,377 shares. The Nov. 14 SEC filing, a page torn from the boundless tome of Form 13F, reveals a post-trade position of 21,046,654 shares, valued at $482.8 million as of Sept. 30.

The Mirror of Market Mechanics

This divestment, though modest in proportion (3.7% of the original holding), is not a mere arithmetic exercise. It is a reflection, perhaps, of the recursive algorithms that govern both stock prices and the human mind. The remaining 5.7% weighting in Hood River’s portfolio-a figure that hovers like a shadow in the margins-suggests a lingering fascination with the company’s digital infrastructure, its labyrinths of data centers and GPU-powered computations. One might imagine the fund’s managers as cartographers mapping a shifting terrain where AI and HPC workloads intersect, their maps perpetually redrawn by the whims of the market.

The Labyrinth of Holdings

Among the fund’s disclosed assets, Applied Digital remains the central axis, flanked by lesser constellations: Marathon Digital (MTZ), Kaeptor (KTOS), Dave (DAVE), and Flex (FIX). These names, like entries in a fictional bestiary, are cataloged with their respective valuations and weightings. Yet the true enigma lies not in their numbers but in the silent logic that binds them-a logic as inscrutable as the Library of Babel’s infinite corridors.

As of Nov. 13, the price of APLD stood at $23.06, a figure that has ascended 221.6% over the past year. This ascent, while meteoric, may yet be a mirage in the desert of volatility. The company’s fiscal third-quarter report-revenue of $64.2 million, an adjusted net loss of $0.03-hints at a paradox: growth that bleeds, a phoenix that never fully ignites.

The Company as Parable

Metric Value
Price (as of market close 11/13/25) $23.06
Market capitalization $6.34 billion
Revenue (TTM) $219.02 million
Net loss (TTM) ($225.71 million)

Applied Digital, that architect of digital cathedrals, operates in a realm where the lines between infrastructure and abstraction blur. Its services-hosting for crypto miners, GPU solutions for AI, and the design of data centers-are less tangible than the marble columns of old. One might liken its business to a recursive function: each layer of computation building upon the last, ad infinitum. Yet even in this recursive utopia, the specter of loss looms, a reminder that not all labyrinths lead to truth.

The Fool’s Glossary

13F assets under management (AUM): A cipher in the lexicon of capital, denoting the securities a fund manager reports to the SEC on Form 13F.
Form 13F: A quarterly missive from institutional managers, disclosing their holdings as if inscribing runes in a sacred text.
Position weighting: The fractional claim an investment holds within a fund’s portfolio, akin to a star’s brightness in a constellation.
High-performance computing (HPC): The art of processing complex calculations at speeds that defy mortal comprehension.
Data center hosting: The alchemy of providing space, power, and security for clients’ digital relics.
Cloud services: The democratization of computing resources, delivered over the ether like a modern-day oracle.
GPU computing: The repurposing of graphics units for tasks beyond their original design, a form of digital transubstantiation.
Artificial intelligence (AI): A simulacrum of human cognition, built from layers of neural networks and statistical approximations.
Machine learning: The process by which machines refine their understanding through data, much like monks transcribe texts to preserve their meaning.
Market capitalization: The sum of all market participants’ beliefs, quantified in dollars and cents.
Crypto mining: The validation of transactions through cryptographic puzzles, a modern-day gold rush with no end in sight.
TTM: A temporal window, the 12 months preceding a quarterly report, through which the past is refracted into the present.

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In the end, Hood River’s trade reads like a footnote in a larger narrative-one where the market’s labyrinths are as much a mirror as they are a maze. The fund’s next quarterly filing, due in December, may yet offer further clues, or it may dissolve into the fog of uncertainty. For now, we are left with the numbers, the metaphors, and the ever-present question: what is the shape of infinity when viewed through the prism of capital? 🌀

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2026-01-06 02:19