Portfolio Performance Overview
The Data Center Portfolio declined broadly over the past two weeks, with the majority of positions in negative territory. The portfolio’s heavy tilt toward power management, cooling, and infrastructure names was a headwind as the market rotated away from growth and into value. However, a few bright spots emerged: Stag Industrial (+3.6%), Siemens AG (+3.7%), and Mitsubishi Heavy Industries (+5.3%) posted gains, while Storj Labs (+4.4%) benefited from decentralized storage interest.
Key Drivers
The primary drag came from names with direct exposure to data center buildout: Modine Manufacturing (-22.3%), CleanSpark (-26.8%), and Kingspan Group (-11.9%) were the worst performers. These declines were driven by company-specific issues rather than a broad theme breakdown. Meanwhile, core holdings like NVIDIA, Vertiv, and Eaton held relatively steady, reflecting continued confidence in the AI infrastructure cycle.
Position Closures
We closed three positions this week:
- CleanSpark (CLSK): The crypto mining thesis no longer aligns with our pure-play data center focus. The stock’s 26.8% decline and lack of catalysts justify reallocation.
- Modine Manufacturing (MOD): A sharp earnings miss and guidance cut broke the near-term catalyst. While thermal management remains important, we prefer to wait for a better entry point.
- Kingspan Group (KGSPF): Weak European construction demand and valuation compression (down 11.9%) reduce the risk/reward. We are rotating into more direct data center beneficiaries.
What to Watch
Key catalysts in the coming weeks include NVIDIA’s earnings, hyperscaler capex announcements, and power availability trends. We remain overweight on electrical equipment (Eaton, nVent), REITs (Digital Realty, Equinix), and semiconductor plays (TSM, Arm). The theme remains intact, but we are actively managing concentration and single-stock risk.
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.