−8.5%
since Oct 8
The idea
I believe the US grid can't keep up with demand from data centers, new factories and electrification, and the equipment to fix that is backordered for years. So the biggest piece of this basket owns the companies building and supplying the grid, with a smaller slice in power producers who can sell electricity at higher prices and another in the nuclear fuel chain. A small set of early-stage nuclear and energy bets rounds it out, and I don't expect them to prove out soon, so I won't read much into their swings.
What it owns
- Equipment makers and contractors face long order backlogs as power plants and data centers wait for turbines, electrical gear, and transmission lines, creating a supply constraint that could ease if orders slow. · GE VernovaIt builds gas turbines and grid equipment that new power plants and data centers are waiting years to receive, and thrives as long as its order backlog keeps growing and production slots stay booked., Eaton CorporationIt sells electrical distribution equipment inside data centers, factories and utility networks, and relies on rising orders and backlog from data center builders., Quanta ServicesIt is the largest US contractor building transmission lines and substations for utilities, and depends on growing backlogs and rising grid spending commitments., Vertiv HoldingsIt supplies power and cooling systems for data centers, directly capturing growth from infrastructure buildout, and signs new orders faster than it ships existing work., Hubbell IncIt makes connectors, substation parts and other hardware that utilities use to maintain and expand the grid, and grows as utility orders increase., Powell IndustriesIt builds custom switchgear and power control systems for utilities, factories and data centers, and maintains a long order book as long as new orders match shipments., MYR GroupIt builds transmission and distribution lines for utilities as a contractor, and grows its backlog by winning large grid modernization projects.42%
- Power generators earn more when supply stays tight and prices rise, and benefit from long-term contracts with large buyers seeking reliable electricity. · Vistra CorpIt owns a large fleet of gas and nuclear plants in Texas that earn more when power grows scarce, and has signed long-term supply deals with data center operators., Constellation EnergyIt operates the largest US nuclear fleet and has locked in long-term contracts to sell carbon-free power to tech companies including major cloud operators., Talen EnergyIt owns a nuclear plant with a deal to supply power to Amazon data centers at premium rates, and depends on that contract holding with regulators., NRG EnergyIt generates and sells power in Texas and is marketing its plants to data center customers seeking reliable electricity at scale.25%
- Uranium mining, fuel enrichment, and reactor component makers benefit from utilities running reactors longer and from government support for domestic nuclear supply independent of Russia. · Cameco CorporationIt mines uranium and owns part of a major reactor services company, benefiting from strong uranium prices and utilities signing long-term fuel contracts to extend reactor runs., BWX TechnologiesIt makes nuclear reactor components and fuel mainly for the US Navy and is expanding into commercial and advanced reactor projects as government support grows., Centrus EnergyIt enriches uranium and is one of few US sources of specialized fuel for advanced reactors, and relies on Department of Energy contracts and funding to support domestic nuclear supply.13%
- Early-stage companies developing small reactors and alternative power systems for data centers have no revenue yet but could succeed if they reach licensing milestones and win customer commitments. · Bloom EnergyIt sells fuel cells that let data centers generate power on site instead of relying on grid connections, and is a small early bet that succeeds only if adoption grows and cash burn stays manageable., Oklo IncIt is designing small reactors to power data centers but has no revenue, and remains a speculative position only if it advances toward a Nuclear Regulatory Commission license and secures customer commitments., NuScale PowerIt holds the first NRC-approved small modular reactor design but has not yet built an operating plant, and depends on winning real customer orders and avoiding project cancellations., NANO Nuclear EnergyIt is developing portable reactors years away from revenue and is the smallest and riskiest position, staying in only if it hits design and licensing milestones without depleting cash.10%
- Cash10%