Portfolio Performance
The Quantum Portfolio declined approximately 17.5% on average over the past month, with all five holdings posting negative returns. The sell-off reflects a broader rotation out of high-growth, speculative sectors as investors digest mixed economic data and rising interest rate expectations.
Holdings Review
- D-Wave Quantum (QBTS): -25.08% – The steepest decline, likely due to its smaller market cap and higher volatility. No fundamental thesis break; the company continues to advance its annealing quantum computing solutions.
- Rigetti Computing (RGTI): -18.18% – Pressured by sector sentiment. Rigetti’s superconducting qubit roadmap remains on track.
- FormFactor (FORM): -19.84% – As a semiconductor test and measurement supplier, FORM is sensitive to chip demand cycles. Near-term headwinds from inventory corrections, but long-term quantum exposure intact.
- IonQ (IONQ): -20.28% – Trapped ion leader; recent technical pullback not justified by fundamentals. Strong balance sheet.
- Quantinuum (HON): -4.13% – Best relative performer, benefiting from Honeywell’s diversified industrial base and lower beta.
Risk Concentration
The portfolio is heavily concentrated in pure-play quantum computing names (QBTS, RGTI, IONQ) with high volatility. FormFactor and Honeywell provide some diversification but remain tied to the theme. The thematic bet is aggressive; investors should be comfortable with drawdowns of 30-50%.
What to Watch
- Q2 earnings reports from IONQ and RGTI in August for revenue growth and customer traction.
- Any major quantum computing breakthroughs or government funding announcements.
- Macro environment: Fed policy and tech sector sentiment.
Portfolio Actions
No positions are closed this week. All holdings remain within their minimum holding periods, and the thematic thesis is unchanged. We maintain conviction in the long-term opportunity set.
Risk Disclaimer: This is not investment advice. Past performance is not indicative of future results. The Quantum Portfolio is a high-risk thematic strategy and may experience significant volatility. Consult a financial advisor before making investment decisions.