−2.6%
since Oct 3
The idea
I believe paper money keeps losing value against scarce, productive assets, so this basket bets on both sides of that trade. The income sleeve holds bitcoin-backed preferreds and a convertible, aiming to out-pay Treasuries. The equity sleeve skips plain index funds for the AI buildout itself: power and grid names, data center landlords, and mega-cap compounders with pricing power. A small cash buffer sits on the side, and I'd rethink this if bonds started doing their job again.
What it owns
- Preferred securities backed by bitcoin collateral offer fixed and variable coupons that aim to exceed Treasury yields, providing income that depends on the issuer's ability to maintain bitcoin holdings and service preferred obligations. · Strategy Inc 10% Series A Perpetual Strife PreferredThe most senior Strategy preferred, paying a fixed coupon backed by bitcoin collateral, and requires Strategy to maintain sufficient bitcoin coverage across its preferred stack., Strive Inc Variable Rate Series A Perpetual PreferredOffers a variable-rate preferred backed by bitcoin accumulation, diversifying the bitcoin-backed income sleeve across a different issuer., Strategy Inc Variable Rate Series A Perpetual Stretch PreferredPays a variable coupon backed by bitcoin collateral, serving as the core income instrument in a strategy that bitcoin holdings can support preferred payments., Strategy Inc 10% Series A Perpetual Stride PreferredThe junior Strategy preferred that pays a high fixed coupon but stands last in the claim on bitcoin collateral, making it the first to face pressure if bitcoin coverage weakens.32%
- Producers and operators of scarce hard assets, electricity generation, transmission equipment, and natural gas and uranium supply, that data centers depend on as AI compute demand accelerates. · Constellation EnergyOperates the largest nuclear fleet in the US and benefits from long-term data center power contracts, providing scarce carbon-free electricity that reprices favorably as demand grows., GE VernovaManufactures gas turbines and grid equipment with a multiyear backlog, providing the physical capital equipment that data center and AI infrastructure expansions require., Vistra CorpOperates power generation plants where data centers are clustering and sells electricity in regions with limited spare supply, enabling pricing power as AI workloads grow., Eaton CorporationSupplies electrical equipment and controls across data centers and grid infrastructure, benefiting from demand exceeding available supply., Quanta ServicesBuilds transmission infrastructure and substations for the power grid buildout, capturing value as scarce skilled labor and constrained supply create pricing discipline., Cameco CorporationMines uranium as nuclear power expands to meet AI electricity demand, providing scarce supply that takes a decade to develop., Williams CompaniesOwns pipelines transporting natural gas to power plants feeding data centers, collecting fees tied to volumes rather than commodity prices., EQT CorporationProduces natural gas that fuels power plants serving data centers, benefiting if AI-driven demand keeps gas prices elevated despite commodity-price sensitivity.25%
- Companies with pricing power across the layers of AI infrastructure, from chip design and manufacturing to cloud services and advertising, earning revenue as AI adoption expands. · MicrosoftCollects licensing and usage fees across Azure cloud and Copilot AI services, serving as a compounder that profits regardless of which AI models or platforms dominate., AlphabetOwns chips, data centers, AI models, and advertising platforms, creating vertical pricing power as search revenue converts to AI-driven services., BroadcomDesigns custom AI accelerator chips and networking hardware with multiyear customer commitments, collecting toll revenue on the buildout of cloud infrastructure., Taiwan SemiconductorManufactures nearly every advanced AI chip regardless of designer, serving as the single narrowest bottleneck in global semiconductor supply., ASML HoldingHolds a monopoly on extreme ultraviolet lithography machines essential for advanced chip production, with order books extending years forward as AI chip demand persists., Meta PlatformsConverts AI spending into advertising revenue today rather than in the future, proving that AI infrastructure investments drive monetizable value.24%
- A convertible preferred that pays a coupon while offering equity upside, combining income collection with the option to participate in the issuer's stock performance. · Strategy Inc 8% Series A Perpetual Strike PreferredA convertible preferred in Strategy Inc that collects a coupon while retaining the ability to convert into common stock, winning from both income and bitcoin appreciation if bitcoin rises.8%
- Real estate owners and operators of data center facilities with rising rents and near-zero vacancy, providing inflation-hedging assets as AI workloads concentrate in physical locations. · Digital Realty TrustOwns data center buildings where AI workloads run, collecting rising rents from nearly full occupancy with low tenant turnover., EquinixOperates interconnection facilities where networks physically meet, creating sticky customer relationships that support pricing power on connection services.6%
- Cash5%