AI/Tech Portfolio
Macro & Market Context
For the full macro and market environment commentary, please refer to the Emit Capital Global Opportunities Portfolio Q1 2026 Quarterly Report. That report covers the Q1 Iran conflict, global oil shock, sovereign bond market analysis, the Emit Nexus investment thesis, and the full cross-asset review.
The key macro developments that shaped portfolio outcomes in Q1 2026, including the Iran conflict and Strait of Hormuz closure, the global oil price shock, the synchronised repricing of sovereign yield curves across the US, Germany and Japan, and the central bank pivot from accommodation to hawkish restraint, are covered in full in the Global Opportunities Q1 2026 Quarterly Report.
This supplement focuses on the portfolio-specific performance, positioning, and outlook for the AI/Tech Portfolio.
Portfolio Performance
Performance Summary — AUD Returns to 31 March 2026
| 1 Mth | 3 Mth | 6 Mth | SI (total) | |
|---|---|---|---|---|
| AI/Tech Portfolio | +1.4% | +0.4% | +5.7% | +31.0% |
| MSCI ACWI (Benchmark) | -1.8% | -10.2% | -8.7% | +5.3% |
| Active Return | +3.2% | +10.5% | +14.4% | +25.7% |
Performance is net of fees. Based on the aggregation of all managed accounts. Individual account performance may vary.
Quarterly Commentary
The AI/Tech Portfolio delivered +0.4% (AUD) for Q1 2026, outperforming the MSCI ACWI by +10.5 percentage points, against a benchmark decline of -10.2% as broad equity markets sold off on the Iran oil shock and heightened AI cost scrutiny.
Vertiv Holdings was the standout contributor at +311 bps, with the data centre power distribution and thermal management business re-rating sharply as the energy crisis elevated the value of mission-critical power infrastructure for AI workloads.
Marvell Technology contributed +190 bps, supported by accelerating custom ASIC demand from hyperscalers. Micron Technology delivered +171 bps, reversing prior-quarter weakness as HBM demand visibility improved materially.
Primoris Services (+67 bps) and Evolv Technologies (+37 bps) rounded out the top five contributors. The main detractor was Microsoft at -166 bps, reflecting AI cost scrutiny and multiple compression in the highest-valuation mega-cap names.
Meta (-40 bps), Celestica (-35 bps) and Quanta Services (-30 bps) also detracted. The options overlay was critical in limiting the Q1 drawdown during March’s severe risk-off episode.
Performance Since Inception
Portfolio Analytics
Sector & Market Cap Allocation
AI Infrastructure CapEx Pipeline — 2026
Top 5 Holdings — Basis Point Contribution (Q1 2026)
| # | Holding | Sector | BPS Contrib. |
|---|---|---|---|
| 1 | Vertiv | Industrials | +311 bps |
| 2 | Marvell Technology | Technology | +190 bps |
| 3 | Micron Technology | Technology | +171 bps |
| 4 | Primoris Services | Industrials | +67 bps |
| 5 | Evolv Technologies | Technology | +37 bps |
Top 5 Holdings — Portfolio Weight
| # | Holding | Sector | Port Wt % |
|---|---|---|---|
| 1 | Marvell Technology | Technology | 9.0% |
| 2 | Micron Technology | Technology | 8.8% |
| 3 | Meta Platforms | Technology | 7.5% |
| 4 | Primoris Services | Industrials | 7.5% |
| 5 | Celestica | Technology | 7.3% |
AI Infrastructure Investment Thesis
The AI/Tech Portfolio is the purest expression of Emit Capital’s conviction that artificial intelligence infrastructure represents the most compelling structural investment opportunity of the current decade. Unlike the Global Opportunities Portfolio, which balances the AI infrastructure thesis across four regional sub-portfolios, the AI/Tech Portfolio concentrates entirely on the companies enabling, building, and powering the AI economy.
Q1 2026 reinforced the thesis on two fronts simultaneously: the hyperscaler capex cycle continued to accelerate beyond even optimistic expectations, and the Iran-driven energy price shock elevated the criticality of reliable, clean power for AI operations from a commercial consideration to a strategic and geopolitical one. The power constraint is now the defining bottleneck for the entire AI economy and that constraint sits squarely within the investment universe of this portfolio.
Wave 1 — Compute: GPUs, Memory & Networking
The GPU and AI accelerator build-out remains the most visible wave. Marvell Technology, the portfolio’s largest holding at 9.0%, and KLA Corp anchor compute exposure. High Bandwidth Memory from Micron Technology, the second-largest holding at 8.8%, remains structurally supply-constrained as HBM adoption accelerates across major hyperscalers. Advanced networking fabrics connecting GPU clusters are a non-discretionary spend, directly benefiting Marvell’s custom ASIC and networking division as design wins compound.
Wave 2 — Infrastructure: Power, Cooling & Data Centres
This is where compute demand meets the physical world. Vertiv Holdings, the portfolio’s top Q1 contributor at +311 bps, provides mission-critical power distribution and thermal management solutions for AI data centre deployments. Primoris Services and Quanta Services add EPC contractor exposure to the data centre and grid infrastructure cycle. Amazon has guided to over $200 billion in AI infrastructure capex, while data centres now account for over 70% of new large-load interconnection requests to US regional grid operators.
Wave 3 — Applications: AI Monetisation Broadening
Microsoft and Meta, each held at approximately 7.2–7.5% portfolio weight, represent the most advanced monetisation of the AI application layer, though both detracted in Q1 as the market repriced AI cost efficiency risk and valuation multiples compressed. Evolv Technologies, an early-stage AI-driven physical security platform, contributed positively and demonstrates how AI is expanding into non-traditional enterprise verticals with real commercial traction.
Portfolio Positioning & Outlook
The AI/Tech Portfolio is positioned to capitalise on structural investment themes within its regional universe, supported by the Emit Nexus derivatives overlay which provides active downside risk management and tactical flexibility across market regimes.
Key Positioning Themes — Q2 2026
- Maintain Vertiv as a high-conviction position. The +311 bps Q1 contribution validates the power distribution and thermal management thesis; as AI data centre power density continues to increase, Vertiv’s mission-critical role deepens.
- Continue overweighting Marvell Technology and Micron Technology. Both confirmed the thesis in Q1. Marvell’s custom ASIC pipeline and Micron’s HBM position remain structurally supply-constrained multi-year opportunities.
- Reassess Microsoft and Meta sizing. Both face AI cost scrutiny and valuation compression headwinds that may persist; selective trimming on any Q2 bounce would improve portfolio quality.
- Add to Primoris Services and Quanta Services selectively. Both are EPC infrastructure contractors directly exposed to the AI data centre and grid electrification capex cycle, with Quanta’s Q1 dip representing a potential entry point.
- Use options overlay to manage hyperscaler earnings risk in Q2. With MRVL, MU, and NVDA all reporting, position-level hedges can be used to protect accumulated gains while maintaining structural upside.
Portfolio Facts & Structure
| Name | Emit Capital AI/Tech Portfolio |
| Structure | Separately Managed Account (SMA) |
| Investor Type | Wholesale & Sophisticated |
| Asset Class | Global Listed Equities — AI & Technology |
| Regions | Global (thematic) |
| Benchmark | MSCI ACWI |
| Strategy Inception | 31 May 2025 |
| Holdings | 15–25 positions |
| Cash Range | 5–15% |
| Minimum Investment | A$250,000 or equivalent |
| Pricing | Daily |
| Prime Broker | Interactive Brokers (IBKR) |
| Currency | AUD / USD |
| Allocation in Global Opps | 25% of Global Opportunities Portfolio |
| Manager | Emit Capital Asset Management Pty Ltd |
| AFSL | 551084 | ABN 57 652 326 237 |