−8.8%
since Oct 8
The idea
I believe corporate security budgets are consolidating away from scattered point tools into a handful of AI-powered platforms, and AI is raising the stakes for both attackers and defenders. This take owns the platform consolidators, the cloud, network and identity names riding that same budget shift, and the attack-surface specialists, with Palantir added as the layer that pulls security data together into decisions. It runs fewer, higher-conviction positions, avoids single-name overexposure, and keeps a cash buffer ready to add to core holdings if an earnings scare creates an opening.
What it owns
- These are the big platforms companies are moving their security budgets onto as they cut down on separate tools. · Palo Alto NetworksIt is the clearest case of companies dropping dozens of separate security tools for one platform., CrowdStrike HoldingsIt protects laptops and servers and keeps adding modules, so it wins when companies cut vendors and AI makes attacks faster., MicrosoftIt bundles security into the software companies already pay for, which makes it a winner when buyers want fewer vendors., FortinetIt sells firewalls and network security as one connected system, which suits buyers cutting their vendor list.32%
- As work moves to the cloud, the companies guarding traffic and networks pick up the same consolidated spending. · ZscalerIt routes company traffic through its own cloud and checks every connection, the zero trust model that AI-driven attacks make more necessary., CloudflareIts global network blocks attacks before they reach a company's servers, and it is adding security products on top of that network., Akamai TechnologiesIt has shifted toward security, shielding websites and apps from attacks, and that part of the business now carries the company., Check Point SoftwareIt is the steady, profitable firewall veteran that balances the faster-growing holdings by holding its customer base.20%
- Newer companies built around AI and data recovery win when breaches get faster and harder to stop. · RubrikIt helps companies recover their data after a breach or ransomware attack, which matters more as AI makes attacks more frequent., SentinelOneIt is built as an AI-first challenger to larger platforms in protecting devices during a period of consolidation., DatadogIt already watches how companies' cloud systems run, which gives it a natural path into spotting security threats in that same data.14%
- Finding weak spots and exposed data before attackers do is a job every consolidated security setup still needs. · QualysIt scans companies for weak spots before attackers find them, part of the attack surface work AI is making more urgent., Tenable HoldingsIt maps everything a company has exposed to the internet and ranks which gaps to fix first., Varonis SystemsIt tracks who can reach sensitive data inside a company, which matters more as AI tools get access to company files.10%
- It pulls data from many tools into one place and helps decide what to do, which matters more as AI speeds up attacks. · Palantir TechnologiesIt pulls security data from many sources and turns it into decisions as attacks and defenses speed up.8%
- Stolen logins are a main way in for AI-driven attacks, so protecting identities gets more budget. · OktaIt controls who gets into a company's systems, and stolen logins are where many AI-driven attacks start.5%
- A broad cybersecurity fund softens the hit if any one company stumbles. · First Trust NASDAQ Cybersecurity ETFIt is a broad cybersecurity fund that steadies the take with a spread of security stocks.3%
- Cash8%