Portfolio Review: Data Center Portfolio
Review Date: August 7, 2026
The Data Center Portfolio continues to benefit from the secular growth in AI and cloud computing. Over the past month, the portfolio has seen strong contributions from power management, cooling, and networking names. We are making strategic adjustments to ensure the portfolio remains tightly aligned with the data center theme.
Recent Performance Drivers
Key performers include Eaton Corporation (ETN) (+16.16%), Schneider Electric (SBGSF) (+13.24%), and Belden Inc. (BDC) (+30.18%), reflecting robust demand for electrical infrastructure and data cabling. Nutanix (NTNX) (+22.21%) and Kingspan Group (KGSPF) (+22.50%) also posted strong gains, driven by hybrid cloud solutions and energy-efficient building solutions.
On the downside, Talen Energy (TLN) (-9.55%) and Vistra Corp. (VST) (-5.40%) faced headwinds from power price volatility, while CleanSpark (CLSK) (-4.65%) was impacted by Bitcoin price fluctuations.
Strategic Adjustments
We are closing three positions to enhance thematic purity and capital allocation:
- Cibus Inc. (CBUS) – Gene-editing agriculture company with no data center relevance.
- Celsius Holdings (CELH) – Energy drink maker, clearly off-theme.
- Corsair Gaming (CRSR) – Gaming peripherals, not core to data center infrastructure; we are locking in a 60% gain.
These closures free up capital for more direct data center plays, particularly in power and cooling infrastructure.
Risk Concentration
The portfolio has notable concentration in power and cooling names, which is appropriate given the data center theme. However, we are monitoring the high weightings in Eaton and Schneider Electric to avoid overexposure to a single sub-sector.
What to Watch Next
We are watching AI capex trends, hyperscaler earnings, and power grid investments. Key positions to monitor include NVIDIA (NVDA), Equinix (EQIX), and GDS Holdings (GDS) as they are direct beneficiaries of data center expansion.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Always conduct your own research before making investment decisions.