−4.6%
since Sep 30
The idea
I believe the economy is shifting from rewarding what we already know to rewarding the act of discovery itself, and AI is accelerating how many attempts get made. Rather than guess which lab or biotech breaks through, I own the toolkit that gets paid regardless: instrument makers, simulation and AI-for-science software, DNA reading and writing, and lab automation, spread across roughly two dozen names so no single company carries the bet. I keep 9% in cash for weakness and treat this as a multi-year holding, not a quarterly trade.
What it owns
- These companies supply the essential tools, consumables and services that labs worldwide depend on for research and diagnostics, getting paid on nearly every discovery attempt regardless of the outcome. · Thermo Fisher ScientificIt supplies instruments, consumables and services to research and diagnostics labs worldwide, collecting revenue on nearly every discovery attempt regardless of outcome., DanaherIt owns a diversified portfolio of life-science and diagnostics businesses that generate revenue as biology research and drug production scale, while regularly expanding its toolkit through strategic acquisitions., Agilent TechnologiesIt supplies chromatography, spectroscopy and laboratory instruments that chemistry and biology labs operate daily, plus the recurring consumables and services those machines require., Waters CorporationIt dominates liquid chromatography and mass spectrometry, generating high-margin recurring revenue from consumables and services as discovery labs operate and upgrade their instruments., BrukerIt sells advanced scientific instruments including NMR, mass spectrometry and microscopy systems that frontier research laboratories depend on for breakthrough discoveries., Mettler-ToledoIt manufactures precision balances and measurement equipment found in essentially every laboratory and quality-control setting globally, as foundational tools for accurate scientific work., RevvityIt supplies reagents, instruments and software that life-science laboratories and diagnostics providers consume during their daily work, generating recurring revenue from essential supplies.34%
- These companies sell software that lets researchers model, simulate and design solutions on computers before building or testing them, replacing some physical trial and error with computation. · SchrodingerIt sells physics-based simulation software that enables drug researchers to test molecular designs on computers before synthesizing them, representing discovery work at its most computational., SynopsysIt sells the design software essential to modern chip development, and semiconductor design represents a major share of discovery attempts and innovation spending., Cadence Design SystemsIt provides the design simulation software that powers semiconductor development and is extending that simulation-first approach into drug discovery and systems engineering., CertaraIt sells biosimulation software that models how drugs behave in the human body, allowing developers and regulators to replace some human and animal testing with computational evidence.19%
- These businesses provide the foundational tools for reading, writing and testing biological material, from sequencing to synthesis to single-cell analysis, that enable the most granular level of discovery work. · IlluminaIt makes the machines that read DNA sequences, providing the foundational data layer for biological discovery, and generates recurring revenue from a large installed base of instruments., Twist BioscienceIt synthesizes DNA sequences on silicon chips, enabling biology engineers to start projects with inexpensive custom genes rather than waiting for traditional synthesis methods., 10x GenomicsIt provides tools that enable researchers to analyze biology at the single-cell and spatial level, addressing the growing demand for resolution in modern life-science research., Pacific BiosciencesIt reads long stretches of DNA with high accuracy, capturing biological information that short-read sequencing misses, and generates revenue as research budgets shift toward more complete genomic data., Ginkgo BioworksIt operates a platform for outsourced organism engineering, getting paid when companies hire it for biology research and development rather than building internal labs.16%
- These businesses make the sensors, cameras and measurement gear that enable engineers and scientists to observe and quantify phenomena across electronics, communications, environmental science and beyond. · Keysight TechnologiesIt makes the test and measurement instruments that engineers use to develop new electronics, wireless systems and quantum hardware, getting paid on every attempt to advance physical technology., Teledyne TechnologiesIt manufactures sensors, cameras and instruments that enable scientists and engineers to observe and measure phenomena from ocean depths to space, across multiple industries., FortiveIt sells precision instruments and workflow software for industrial and healthcare operations, capturing value as industries increasingly depend on data from the physical world.13%
- These companies automate the storage, handling, testing and movement of samples and materials, increasing throughput and precision as discovery work scales up. · AzentaIt stores, manages and transports the biological samples that research generates, so higher experiment volumes directly expand its business opportunities., TeradyneIt tests semiconductor chips before shipment and sells collaborative robots for lab and factory automation, capturing value as production volumes and automation adoption increase.9%
- Cash9%