Two Seas Capital's Q1 2026 13F is the largest AUM filing in this batch at $7.15B with 50 positions, and the quarter is dominated by two structural moves: a $1.68B increase in SPY (State Street S&P 500 ETF, $4.21B, 58.8% of AUM — up from 52.1%) that makes the fund one of the most ETF-concentrated mega-funds in the dataset, and a simultaneous aggressive entry into small-cap biotech (Nektar Therapeutics +$109.5M, +162.9% shares; Immunovant +$66.6M, +23.1%; Arbutus Biopharma +$23.0M, +47.4%; Esperion +$12.8M, -4.3%) and crypto-mining infrastructure (Cipher Digital +$21.9M, +570.5%; Bitdeer +$19.2M new; Hut 8 trimmed $91.4M but retained $11.7M). The fund also made its largest-ever Apple opening ($215.7M, 3.0%) and added First Solar (+$75.9M, +167.9% shares), Echostar (+$44.9M, +88.3% shares), Sable Offshore (+$75.2M, +217.1% shares), and Golar LNG (+$38.9M, +30.2%). On the sell side, the fund liquidated a $258.5M IWM (iShares Russell 2000) position entirely, sold Indivior PLC ($183.3M), trimmed Meta from a $9.4M CoreWeave-driven entry to zero, and reduced Hut 8 from $103.1M to $11.7M. The Read is a $7.15B mega-fund that has decided its core equity exposure is best delivered via SPY and is using the freed active-management budget to build high-conviction sleeves in small-cap biotech (binary-catalyst names), crypto-mining infrastructure (post-halving capex cycle), and renewable-energy infrastructure (First Solar, Talen, Calumet). The 44 total changes (12 new, 4 sold, 14 increased, 11 decreased, 3 unchanged) is extraordinarily high churn for a $7B fund and signals a desk that is in active portfolio-construction mode rather than a passive indexer.
The SPY increase is the structural anchor of this filing and the single most important trade to interpret correctly. SPY rose from $2.53B (52.1% of AUM in Q4 2025, when AUM was $4.85B) to $4.21B (58.8% in Q1, when AUM is $7.15B) — a $1.68B and 2,761,600 share increase (+74.5% shares). Part of this is mechanical: the fund raised $2.37B in new capital between Q4 and Q1 (AUM grew from $4.85B to $7.15B) and the manager chose to deploy the majority of that inflow into the S&P 500 core. But the increase in share terms (74.5%) exceeds the inflow growth (47.4%), which means the manager is also actively reallocating FROM the satellite sleeves INTO SPY — a deliberate decision that broad-market passive exposure is delivering better risk-adjusted returns than the active sleeves in the current environment. The companion liquidation of IWM ($258.5M Russell 2000 small-cap ETF) entirely is the matching active decision: the manager is exiting small-cap US equity via ETF and replacing it with small-cap US equity via single-name biotech and energy names that they believe have asymmetric upside. SPY + IWM sale = the manager is keeping large-cap US passive but replacing small-cap passive with concentrated active single-name positions.
The satellite sleeves reveal the manager's highest-conviction views. The biotech sleeve is the most aggressive: Nektar Therapeutics ($140.9M, 2.0%) was raised $109.5M and 1,214,993 shares (+162.9%) — a biopharma name with an opioid-dependency pipeline and a historical FDA track record that the manager is clearly viewing as a binary 2026 catalyst play. Immunovant ($79.5M, 1.1%) was raised $66.6M and 335,000 shares (+23.1%) — an肥胖症-and-autoimmune antibody developer with a late-stage Phase 3 program that the manager is adding into ahead of expected 2026-2027 readouts. Arbutus Biopharma ($83.5M, 1.2%) was raised $23.0M and 5,968,385 shares (+47.4%) — an HBV-and-RNAi platform with a 2026 FDA PDUFA date. Esperion Therapeutics ($31.2M, 0.4%) was reduced slightly (-4.3%) but remains a large position — a cholesterol-drug developer with a 2026 commercialization inflection. The absent but notable name is Moderna ($55.9M, new, 1.1M shares) — the manager opened a fresh position just as the 2026 RSV-and-cancer-vaccine pipeline is approaching binary catalysts; the $55.9M opening is consistent with a biotech sleeve that is being restocked ahead of a dense 2026 catalyst calendar. Uniqure ($21.3M, new, 1.3M shares) — a gene-therapy name with a 2026 hemophilia B data readout — is the smallest but most asymmetric biotech addition.