−9.0%
since Oct 9
The idea
I believe security spending is consolidating from scattered point tools into a handful of AI-powered platforms, with AI raising the stakes for attackers and defenders alike. So I only hold companies that make their money primarily from security, skipping the diversified giants and the sector ETFs that just duplicate each other. The portfolio centers on the platform leaders driving that consolidation, with cloud and network security, AI-native defense, identity, and attack surface management filling it out, pure plays only, no single name over 13%.
What it owns
- These are the platforms companies pick when they replace a pile of separate security tools with one vendor. · Palo Alto NetworksIt sells firewall, cloud and security operations as one package, making it the clearest bet on teams consolidating dozens of point tools into a few platforms., CrowdStrike HoldingsIt started on the endpoint and keeps adding modules to the same agent, which is exactly how consolidation works when customers buy more features per account., FortinetIt bundles firewalls with SASE, the cloud-delivered network security that replaces separate VPN and web filtering boxes when buyers want fewer vendors.34%
- Security has moved off the office network and into the cloud, and these companies protect that traffic. · ZscalerIt sits in the traffic path between employees and the internet, a natural place to consolidate network security as offices give way to zero trust architectures., CloudflareIt runs a global network that carries a big share of web traffic and sells security as part of that platform, fitting the move toward fewer, bigger vendors., Check Point SoftwareIt has a large installed base of customers it is moving onto its own consolidated platform to compete with newer vendors and other consolidators.23%
- These newer defenders use AI to detect attacks and recover from them, which is the arms race the take is betting on. · RubrikIt sells cyber recovery with clean backups that companies can restore after ransomware, making that last line of defense more valuable as attacks grow more sophisticated., SentinelOneIt is the AI-native endpoint challenger offering a cheaper, AI-powered alternative for buyers who want that approach but not the leading incumbent.13%
- These companies find weak spots and exposed data before attackers do, a job that gets harder as AI speeds up attacks. · QualysIt scans companies for weak spots attackers could use, and the work gets harder and faster as AI speeds up how quickly vulnerabilities are found and exploited., Tenable HoldingsIt sells exposure management, a single view of everything a company has that could be attacked, which is the attack surface piece of a consolidated security stack., Varonis SystemsIt protects the data itself by tracking who can see sensitive files, a job that matters more as AI assistants get access to everything inside a company.13%
- Stolen logins are how most breaches start, so identity is one of the budget lines that keeps growing. · OktaIt is the independent identity layer, the login system that sits across every app, and companies increasingly choose a neutral vendor instead of one bundled by a big platform.7%
- Cash10%