Equity

In today’s increasingly complex and information-rich equity markets, stock selection is a critical driver of portfolio outperformance. While passive exposure can capture market beta, true alpha is generated by identifying specific businesses with asymmetric return profiles, unique positioning, and underappreciated upside potential. As correlations across sectors rise and macro narratives dominate headlines, the edge increasingly lies in differentiated insights and targeted conviction—not broad market exposure.

The most compelling equity opportunities often exist in asymmetric setups, where the potential upside significantly outweighs the downside. These trades typically arise when the market misjudges a company's prospects due to temporary dislocations, structural inefficiencies, or behavioral biases. To capture these opportunities, investors must do more than just follow the consensus—they must have a clear, research-backed thesis, the conviction to size accordingly, and the discipline to act decisively when the risk/reward is skewed.

Our current investment thesis is rooted in the ongoing capital expansion required to resolve infrastructure bottlenecks in AI. As demand for compute accelerates and capacity constraints emerge in areas such as power, networking, and advanced chip packaging, we see targeted upside in enablers of this buildout cycle. This is a structural tailwind that the market continues to underappreciate—particularly in upstream and "picks and shovels" names that stand to benefit disproportionately. These represent classic asymmetric setups where high conviction and precise stock selection are critical.

Ultimately, consistent long-term performance comes not from owning everything, but from knowing what to own, why you own it, and when the market is mispricing it. In these moments, it is conviction—grounded in rigorous research—that enables outsized returns and separates signal from noise. Q3'25