Portfolio Performance Overview
As of July 15, 2026, the Quantum Portfolio is down significantly across most holdings, reflecting a challenging period for quantum computing stocks. The portfolio’s six open positions have posted an average return of approximately -18.7% since their respective pick dates, with the largest declines in D-Wave Quantum (QBTS, -33.68%) and IonQ (IONQ, -32.38%). The only position not in the red is Quantinuum (HON), which was added on July 1 and has yet to move.
Key Drivers of Recent Performance
The quantum computing sector has faced headwinds from several factors:
- Macro rotation: Investors have rotated out of high-growth, pre-revenue tech names into value and defensive sectors amid rising interest rate expectations.
- Earnings disappointments: Several quantum companies reported quarterly results that fell short of lofty expectations, leading to sharp sell-offs.
- Competitive landscape: Increased competition from large tech firms (e.g., Google, IBM) and concerns about the timeline for commercial quantum advantage have weighed on sentiment.
- Liquidity concerns: Pure-play quantum names remain relatively illiquid, amplifying downside moves.
Risk Concentration
The portfolio is heavily concentrated in early-stage quantum computing companies, with five of six positions in pure-play names. This concentration amplifies sector-specific risk. The addition of Quantinuum (via Honeywell) and Infineon (IFNNY) provides some diversification into more established players, but the portfolio remains highly exposed to the quantum theme.
Position-by-Position Review
- D-Wave Quantum (QBTS): Down 33.68%. The company continues to focus on annealing quantum computers, but near-term revenue growth has been slower than anticipated. Thesis remains intact for long-term quantum adoption.
- Rigetti Computing (RGTI): Down 24.37. Rigetti’s superconducting qubit approach is promising, but the company faces cash burn concerns. No change in thesis.
- FormFactor (FORM): Down 16.81%. As a semiconductor test and measurement provider, FORM benefits from quantum R&D spending. The decline appears correlated with broader tech weakness.
- IonQ (IONQ): Down 32.38%. IonQ’s trapped-ion technology is a leading approach, but the stock has been volatile. Recent news of a partnership delay may have contributed.
- Quantinuum (HON): Flat. New position; awaiting catalyst from Honeywell’s quantum spin-off progress.
- Infineon (IFNNY): Down 4.99%. Infineon provides semiconductor solutions for quantum control electronics. The modest decline reflects its more diversified business model.
What to Watch Next
- Earnings season: Upcoming quarterly reports from IONQ, RGTI, and QBTS will be critical for sentiment.
- Government funding: Any announcements from the U.S. CHIPS Act or similar initiatives could provide a catalyst.
- Technical milestones: Progress toward quantum error correction or increased qubit counts may reignite investor interest.
- Macro environment: Interest rate decisions and risk appetite will continue to influence the sector.
Portfolio Actions
No positions are recommended for closure at this time. All holdings are within their minimum holding period, and the thematic thesis for quantum computing remains compelling over a multi-year horizon. We will continue to monitor for thesis-breaking developments.
Disclaimer: This is not investment advice. Past performance is not indicative of future results. Investing in quantum computing stocks involves significant risk, including potential loss of principal. Always conduct your own research and consult a financial advisor.