My Performance (Benchmark: S&P 500)
- 2021: -36% (+27%)
- 2022: -76% (-19%)
- 2023: +80% (+24%)
- 2024: +104% (+23%)
- 2025: +85% (+18%)
- Jun 12 2026: +41% (+9%)
CAGR
- 1 Year CAGR: +75% (+26%)
- 3 Year CAGR: +79% (+21%)
- 5 Year CAGR: +8% (+14%)
Current portfolio holdings:
- Networking/Connectivity (44%)
- CRDO 19%
- ALAB 16%
- SITM 9%
- Memory/Storage (31%)
- SNDK 17%
- MU 14%
- Photonics/Optics (13%)
- LITE 13%
- Compute/Data Centers (9%)
- NBIS 9%
- Power/Energy (7%)
- BE 7%
Portfolio is 104% long and has 8 positions in 5 themes.
Changes in May/June
- Sold
- Software (RDDT, APP)
- RDDT - My NTM Growth rate is 45%. I am trying to get to 50% growth rate. So this was a tough sell but all the businesses I own are over 70% growth rate.
- APP - My ntm growth rate is 41%. And since it makes way more fcf than growth, I am trying to get away from these businesses. Usually these are mature companies. APP 40%+ growth is still very good especially with the level of profitability. But if I can find a profitable business doing 70% growth, I am leaning towards that.
- Defense (ONDS, KRKNF)
- ONDS - Too much dilution. And it’s a pattern. Too risky a bet for me. Hence, I am out.
- KRKNF - I think it will do well but OTC is not my game. Just doesn’t have the same kind of market movement correlation that I look for. I have been burnt by OTC before, example BSEM, so decided to let this one go. With this market pullback this week, it was a good time to consolidate and this was one of the bottom ones in my conviction list. So I am out.
- Payments (DAVE)
- 29% ntm growth. No way. Out.
- Crypto (FBTC)
- Was a nice trade. Might do it again. But really not a long term hold for my growth portfolio.
- Compute (NVDA, AVGO)
- Too big. Too slow. Nothing wrong with these, absolute beasts given the numbers they are putting up with their size. But I am leaning more high beta and these have about 35-45 beta. I am trying to own 60+ beta, and in some cases 80+. So I rotated out.
- Software (RDDT, APP)
- Bought
- LITE - Have been on radar for a while. Good pullback finally in photonics/optics space, hence I pulled the trigger
- NBIS - This earnings cycle finally flipped the quality for Nebius to a top name. I have always followed it but I was staying away from all neo-clouds since their fcf burn is more than growth. But NBIS flipped it this quarter. So I am in.
- SITM - 60+ quality score and doing almost everything right. What I like is a new category of data set that I started to track and it is flying there. It’s trend of scores across quality, growth, analyst upgrade percent, gross margin yoy, fcf yoy. In all five categories, SITM has risen over the last couple of months. Extremely rare feat. MU and SNDK has done this too. So I think I am catching this a bit earlier. Well, it is up 500% over last 12 months but it’s still accelerating, so let’s see.
- BE - I needed to get energy and power exposure. And BE seems to have the best quality score. I like quality, growth and analyst trend - so trying this out.
My Methodology - current top quality scores:
All green bars I own
Why I own what I own:
Note: Sharing my opinion, not advice
Credo 20%, ALAB 16%
- Compute is still a scarcity. Networking especially is going through a lot of innovation across the new generating of compute servers being released.
- Credo is still incredibly cheap compared to Astera Labs. If Credo keeps performing I think it catches up with the ntm sales multiple of ALAB. I know they are lower margins but the growth more than makes up for it. And even if they don’t get a multiple expansion from here, just the sheer growth rate should yield great returns if they can keep being highly profitable.
- Astera Labs is clearly the leader and has a multiple premium on it. A lot of different metrics show it is overvalued but it still powers on. I am trimming but not really getting caught up in the valuation down sizing game. I have seen good companies stay overvalued for a long long time especially when they have very high growth rates.
SNDK 16%, MU 14%
- The memory/storage space is a hot potato currently. It’s not the valuation, neither it is the growth, it’s the asset price rise that has got everyone dizzy. I see potentially two scenarios play out. First, this shortage lasts a couple of more quarters and things keep going vertical. Second, everything peaks on good news and we are down 30/40% in a matter of a few weeks. For first scenario to keep playing out, I just need to see massive beats and raises. More than the beats the raises would be the key. I still haven’t seen a business raise massively and go down but not recover. They usually recover if the raise is there. For the second scenario, if a big drawdown happens and the stock starts to react poorly over time, I would reduce my exposure after the 30/40% fall and attempted recovery.
- Trimming and sizing is fine but I don’t want to reduce major stake since no one really knows how far this goes. On the other side, is always best to reduce big chunks of exposure as the drawdown can start another 100% from today’s prices, who knows.
LITE 14%
- The numbers Lumentum is putting up is eye popping. It has taken a good breather and has gone sideways for a while. I expect this to keep going up as long as they perform. Forward growth is still going to be around 100% and they are now profitable. You don’t see businesses like this quite often.
SITM 9%
- SiTime offers various types of oscillators, as well as clock integrated circuits, resonators, and synchronization software for use in artificial intelligence systems, data center, communications, enterprise, automotive, industrial, aerospace, defense, mobile, Internet of Things, and consumer markets
- Another business that had a great beat and massive raise. That got me interested. The growth is 50%+ and it is trending higher on the five key KPIs I track. Growth rate, Quality Score, Gross Margin rate, FCF margin rate, and Analyst upgrade trend.
NBIS 9%
- Nebius had a great quarter and the work it did towards profitability flipped my model. So I took a starter position and since it came in quite a bit, I bumped it closer to a Tier 2 - 10% holding. Growth was never the issue for me. Profitability or getting towards it was. The margin improvements and continued execution made me take a significant stake again in the neo-cloud space.
BE 7%
- Energy seems to be the next bottleneck. Bloom Energy is well positioned to take advantage of this. They are going to grow 70%+ revenue and already cash flow positive. Their recent quarter was a massive beat and if that’s a sign of things to come, I think this investment will look good in a few quarters. Let’s see how things go. Starter position for now.
Wrapping Up
Apologies for the delayed write up. I feel like if I can’t do justice to the write up, I should not post on this board. I will try to post often but not sure if I will be able to keep up my monthly write ups.
This month I have done a couple of changes to my style of investing. I am pushing the bar for growth even higher and only allowing businesses with 50%+ growth rates in my portfolio. In addition to that, I need my quality score to be above 40 and I am setting a floor for implied volatility to be over 60. This new implied volatility score is mainly to take advantage of stocks that has the potential to take off faster from major bottoms. This rule eliminates stocks like AVGO, PLTR, NVDA, KRYS. And backtesting has shown that IV does play a big part in my returns as long as I am picking the right horses and can withstand major volatility. So I am rolling with it. Let’s see how it goes.
This is definitely a portfolio all time high month. Very thankful for that, especially after the -35% start I had this year. The crazy part is we are only half the way through this year. With new fed chair and mid-term elections coming up and the usualy Sept-Oct soft spot, we might be in for a bumpy ride.
Wishing everyone the best in their investing journey. Always a privilege posting here. Thank you for reading. Cheers!
My previous portfolio reviews:
2025: Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec