North American
Portfolio
Q1 2026 · January – March 2026
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 — 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 North American Portfolio.
Portfolio Performance
Performance Summary — AUD Returns to 31 March 2026
| 1 Mth | 3 Mth | 6 Mth | 1 Yr | 2 Yr | SI p.a. | SI Total | |
|---|---|---|---|---|---|---|---|
| North American Portfolio | +1.5% | +3.9% | +11.7% | +47.5% | +61.8% | +31.1% | +508.1% |
| S&P 500 (Benchmark) | −2.1% | −7.8% | −6.5% | +5.9% | +16.1% | +11.1% | +101.7% |
| Active Return | +3.6% | +11.7% | +18.1% | +41.6% | +45.8% | +20.0% | +406.4% |
Performance is net of management fees. Based on the aggregation of all managed accounts. Individual account performance may vary.
The North American Portfolio delivered +3.9% (AUD) for Q1 2026, outperforming the S&P 500 by +11.7 percentage points. GE Vernova was the standout contributor at +356 bps, confirming the AI power demand and grid infrastructure thesis as the dominant driver of portfolio returns. Powell Industries contributed +224 bps, its power distribution and switchgear exposure directly benefited from surging data centre and grid electrification demand. Albemarle (+134 bps) recovered strongly as lithium market dynamics improved, while Eaton Corp (+87 bps) and Cameco (+62 bps) rounded out the top five.
The primary detractors were Constellation Energy (−204 bps), Oklo (−187 bps), and Tesla (−57 bps), reflecting rate-sensitivity and valuation compression in speculative names during the Iran-driven bond selloff. The options overlay and elevated cash position ahead of the conflict provided meaningful downside protection through the March risk-off episode.
Growth of A$100,000 (AUD, net of fees). Approximate inception NAV series used for illustrative purposes.
Portfolio Analytics
Top 5 Contributors — Q1 2026
| # | Holding | Sector | BPS Contrib. |
|---|---|---|---|
| 1 | GE Vernova | Utilities | +356 bps |
| 2 | Powell Industries | Energy | +224 bps |
| 3 | Albemarle | Basic Materials | +134 bps |
| 4 | Eaton Corp | Industrials | +87 bps |
| 5 | Cameco | Energy | +62 bps |
Top 5 Holdings — Portfolio Weight
| # | Holding | Sector | Port Wt % |
|---|---|---|---|
| 1 | GE Vernova | Utilities | 13.3% |
| 2 | NextEra Energy | Utilities | 9.9% |
| 3 | Albemarle | Basic Materials | 8.2% |
| 4 | Cameco | Energy | 6.6% |
| 5 | Powell Industries | Industrials | 6.6% |
Regional Outlook & Positioning
The North American Portfolio targets high-conviction exposure to US and Canadian equities at the intersection of electrification, grid build-out, clean power, and AI infrastructure supply chains. Q1 2026 saw the portfolio's energy transition and nuclear holdings outperform significantly as the Iran conflict validated the energy security thesis, while growth-heavy technology names weighed on the broader US market.
The North American 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 GE Vernova as the anchor position. The +356 bps Q1 contribution and sustained AI power demand / grid expansion thesis underpin continued conviction at 13.3% weight.
- Powell Industries and Eaton Corp warrant increased attention after strong Q1 contributions (+224 bps and +87 bps respectively). Both benefit from the same data centre electrical infrastructure buildout with different valuation risk profiles.
- Reassess Constellation Energy (−204 bps) and Oklo (−187 bps) as the rate environment settles. Both experienced significant valuation compression in Q1 despite intact long-term nuclear thesis; entry discipline is key.
- Monitor Tesla's Mega Cap reclassification (−57 bps in Q1). Growth stock de-rating drove underperformance; any Iran resolution and rate normalisation would be a near-term catalyst.
- Use the options overlay to hedge both directions. An Iran ceasefire could trigger sharp rotation out of energy and nuclear names back into rate-sensitive growth; the overlay provides flexibility to manage both scenarios.
Portfolio Facts & Structure
| Name | North American Portfolio |
| Structure | Separately Managed Account (SMA) |
| Investor Type | Wholesale / Institutional |
| Asset Class | US & Canadian Listed Equities |
| Regions | North America (US & Canada) |
| Benchmark | S&P 500 |
| Strategy Inception | July 2019 |
| Holdings | 15–20 positions |
| Cash Range | 5–20% |
| 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 / ABN | 551084 | ABN 57 652 326 237 |
This portfolio is one of five strategies managed by Emit Capital Asset Management. For the full firm overview and Global Opportunities Quarterly Report, visit emitcapitalam.com.