Portfolio Action: A Strategic Reallocation into AI Infrastructure & Cloud
This week, I executed a key strategic reallocation within the portfolio. This is a direct reflection of our core philosophy: maintaining a long-term vision while conducting regular, disciplined reviews to ensure our capital is allocated to the most compelling opportunities.
The following actions have been completed:
1. The position in Alphabet ( $GOOG ) has been closed.
2. The position in NVIDIA ( $NVDA ) has been trimmed from 13% back to a target weight of ~11%.
3. A new position in Marvell Technology ( $MRVL ) has been opened.
4. A new position in Datadog ( $DDOG ) has been opened.
The Rationale for these Changes:
The decision to trim $NVDA is a simple act of risk management. Its excellent performance caused the position to become overweight, and this rebalancing locks in some gains while maintaining our core conviction.
My decision to close the $GOOG position is based on several company-specific concerns: its recent growth has underwhelmed, analyst recommendations have started to slow, and I believe its core search business faces a significant long-term threat from generative AI.
This has freed up capital to invest in what I see as the pure-play, high-margin "architects" of the AI and cloud revolution.
Our New Positions:
Marvell Technology ($MRVL): Marvell is a leader in custom silicon and networking hardware for AI data centers. It complements our existing holdings in $AMD and $NVDA by providing the critical "nervous system" (networking, custom chips) for the infrastructure that their GPUs power.
Datadog ($DDOG): Datadog is a best-in-class software company providing a mission-critical "observability" platform for cloud applications. Its high-margin, recurring-revenue model is exceptionally strong and stands in stark contrast to the business models we are moving away from.
This reallocation sharpens our portfolio's focus on the most powerful secular growth trends in technology today. Long-term conviction must be paired with active oversight.
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