Clean Transport Portfolio Review: Polaris Closed as Theme Tightens

Portfolio Performance Overview

The Clean Transport Portfolio returned mixed results this week. Rail and charging infrastructure stocks faced headwinds from regulatory uncertainty and supply chain issues, while industrial names like Knorr-Bremse (+6.96%) and XPO (+3.42%) posted gains. The portfolio’s thematic focus on rail, charging, and low-emission transport remains intact, but we are tightening our holdings to ensure alignment.

Key Moves This Week

Close: Polaris Inc. (PII) – Down 12.52% since pick, Polaris is a recreational vehicle manufacturer with limited exposure to clean transport. Its core business (off-road vehicles) does not fit the theme, and fundamentals are deteriorating due to rising dealer inventories and weakening consumer demand. We are reallocating capital to better-aligned opportunities.

Positions on Watch

  • Greenbrier Companies (GBX) – Down 4.33%. Railcar demand is cyclical; we monitor for a catalyst.
  • BorgWarner (BWA) – Down 6.74%. Transition to EV components is slow; hold for long-term thesis.
  • Tritium DCFC (DCFCQ) – No quotes available; liquidity risk. We may close if no improvement.

What to Watch

Key drivers include EU charging infrastructure mandates, US rail safety regulations, and earnings from Alstom and Wabtec. We are evaluating new positions in hydrogen fuel cells and battery recycling to diversify.

Disclaimer: This is not investment advice. Past performance is not indicative of future results. All investments carry risk, including loss of principal. Consult a financial advisor before making investment decisions.