Crossroads Capital’s Confidence in Nebius Group (NBIS) Reflected in Scaled Position

Crossroads Capital, an investment firm, detailed its confidence in Nebius Group N.V. (NBIS) in its Q2 2026 investor letter. The letter revealed the fund's holdings had scaled 11.5% net of fees and expenses. Since inception, Crossroads Capital has achieved a 17.9% net compounded return. As of June 30, 2026, the fund held 115.0% non-delta-adjusted gross and net exposures.

The S&P 500 rebounded 14.9% in Q2, its best performance since 2020, amid easing market uncertainty. Simultaneously, the oil market transitioned with fluctuating Brent crude prices. AI and semiconductors showed robust growth, with 25% earnings expansion.

Investment strategies emphasized risk pricing that was continuous but resolved discontinuously. Small-cap benchmarks achieved new highs, while the Magnificent 7 experienced modest gains. Market activity in Q2 centered on adjustments rather than facts, leveraging high option premiums.

Crossroads Capital highlighted Nebius Group N.V. (NASDAQ:NBIS) as a standout pick. The company focuses on developing full-stack infrastructure for the AI sector. NBIS closed at $223.90 per share on August 19, 2026. Over the past 52 weeks, its shares surged 238.32%.

NBIS, formerly a Russian-adjacent division of Yandex, faced challenges initially, including no anchor customer and a cash burn. However, by August 12, 2026, it reported $582.3 million in revenue and a 50% adjusted EBITDA margin in its core AI cloud business. Today, NBIS is an AI infrastructure platform with substantial commitments from Microsoft, Meta, and Nvidia. Notably, it has secured over $46 billion in committed contract value and approximately 5 GW of contracted power by year-end.

The Meta partnership is pivotal, with a $27 billion deal over five years, encompassing first-scale Vera Rubin deployments and Meta-backed uncommitted capacity. This strategic alignment mitigates demand risk. Despite not ranking among the 40 most popular stocks among hedge funds, NBIS has gained traction, with 60 hedge funds holding it as of Q2 2026. Crossroads Capital acknowledges NBIS's potential but believes other AI stocks present greater upside and lower downside risk.