The Water Technology Portfolio continues to benefit from global infrastructure spending and increasing demand for water efficiency solutions. This week, we review the performance of our holdings and assess any necessary adjustments.
Portfolio Performance
As of July 10, 2026, the portfolio’s open positions have delivered mixed returns:
- Advanced Drainage Systems (WMS): +11.50% – Strong demand for water management solutions continues to drive performance.
- Xylem Inc. (XYL): +8.80% – Solid execution in water technology and analytics.
- Mueller Water Products (MWA): -1.62% – Slight pullback, but thesis remains intact.
- Evoqua Water Technologies (WTS): -1.92% – Short-term volatility, no fundamental deterioration.
- Grundfos Holding (BABA): 0.00% – Newly added, awaiting catalyst.
Theme and Positioning
The portfolio remains concentrated on water infrastructure, with exposure to both U.S. and global players. The theme is supported by aging infrastructure, regulatory tailwinds, and climate adaptation needs. No regional exchange restrictions apply.
Risk Considerations
Key risks include regulatory changes, commodity price fluctuations, and project delays. The portfolio is moderately concentrated in the water sector, which could lead to correlated moves. However, diversification across sub-segments (pipes, pumps, treatment) mitigates some risk.
Outlook
We continue to monitor earnings reports and infrastructure policy developments. No positions are recommended for closure at this time, as all holdings are within their minimum holding periods and theses remain valid.
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.