Investor Summary
Fund Strategy
FUND PERFORMANCE AS OF 31st March 2026
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Green Alpha's Next Economy Growth & Income strategy delivered outperformance during Q1 2026's cascading disruptions, validating their thesis of investing in companies solving systemic risks rather than creating them. The Iran war closed the Strait of Hormuz, pushing oil past $126 and disrupting 20% of global oil trade, while tariff policies imposed an average $1,500 tax increase per household. Against this backdrop, the portfolio's focus on energy transition, semiconductor leadership, and AI infrastructure proved resilient. Top holdings include TSMC, which achieved 70-80% yields on revolutionary 2nm chips, and Brookfield Renewable, which secured landmark power deals with Microsoft and Google totaling 13.5 GW. The manager views these disruptions as structural validation of the energy transition thesis, accelerating substitution away from fossil fuel dependency. With global renewable investment reaching $2.2 trillion in 2025 and road fuel demand peaking globally, the portfolio is positioned for the largest capital reallocation in economic history. The firm remains constructive, citing the strongest structural tailwinds in their history.
Green Alpha positions capital in companies solving systemic risks rather than creating or depending on them, focusing on businesses developing solutions to global challenges like climate change, resource degradation, and energy security through the Next Economy investment framework.
The manager remains constructive, stating that structural tailwinds behind the Next Economy are stronger today than at any point in the firm's history. The disruptions of Q1 are characterized as painful but not surprising, representing the scenario their portfolios were constructed to withstand and exploit.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| May 11 2026 | 2026 Q1 | BEPC, HASI, IBM, LRCX, TSM | AI Infrastructure, clean energy, Data centers, Energy Transition, Geopolitical, Iran War, semiconductors, Supply Chain |
TSM LRCX BEPC IBM HASI |
Green Alpha's Next Economy strategy outperformed during Q1 2026's Iran war and tariff-driven disruptions by owning energy transition and AI infrastructure leaders rather than fossil fuel-dependent companies. Key holdings TSMC and Brookfield Renewable delivered breakthrough 2nm chip production and record clean energy deals respectively. The crisis validates their thesis that portfolios built around solving systemic risks outperform those perpetuating them. |
| Jan 14 2026 | 2025 Q4 | 002594.SZ, 006400.KS, 300274.SZ, 300750.SZ, 373220.KS, 601012.SS, 601766.SS, GE, QS, TM, WOLF | AI, Batteries, China, Energy Transition, geopolitics, infrastructure, Manufacturing, technology | - | China dominates the Electric Stack (batteries, magnets, power electronics) that powers the Next Economy while the US bets everything on AI. Green Alpha believes physical infrastructure trumps intelligence alone. The firm is moving capital toward companies building electrostate infrastructure and away from petrostate incumbents, riding proven cost curves in energy transition technologies. |
| Oct 13 2025 | 2025 Q3 | ACHR, ANET, AVGO, CRWD, LRCX, MU, NET, RBRK, STX, XPEV | AI, China, cybersecurity, Electric Vehicles, Energy Transition, infrastructure, semiconductors, technology |
NET AVGO RBRK XPEV NET AVGO RBRK XPEV |
Green Alpha's Next Economy Index outperformed by investing in companies solving systemic risks from AI power demands to cybersecurity threats. The fund holds technology leaders like Cloudflare, Broadcom, and XPeng that are building essential infrastructure for a sustainable economy. Three catalysts drive the outlook: AI infrastructure buildout, China trade arbitrage, and resource scarcity making efficiency solutions mandatory. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
Energy TransitionThe Iran war and energy supply disruptions have vindicated the energy transition investment thesis more than any policy announcement could. Wars and supply shocks create structural demand changes, with the EU's 20% natural gas reduction after Ukraine becoming permanent. Global renewable investment reached $2.2 trillion in 2025, representing two-thirds of all energy spending, with road fuel demand peaking globally. |
Renewables Clean Energy Energy Security Supply Chain Infrastructure |
SemiconductorsTSMC has commenced mass production of 2nm chips with 70-80% yields, delivering 15% performance boost or 25-30% power reduction versus 3nm. The company controls 38% of the $320 billion global foundry market with technology lead that competitors cannot close. Lam Research benefits from increasing manufacturing complexity as chips go three-dimensional. |
AI Infrastructure Manufacturing Technology Supply Chain Innovation | |
AIAI workloads demand ever more advanced process nodes and advanced packaging, with TSMC at the center of AI compute supply chain. Data center power demand is surging, driving structural tailwinds behind accelerating electricity demand from AI infrastructure. IBM is building quantum-centric supercomputing architecture for next-generation scientific breakthroughs. |
Data Centers Computing Infrastructure Power Demand Innovation | |
GeopoliticalThe Iran war closed the Strait of Hormuz, disrupting 20% of global oil trade and pushing Brent crude past $126. The Supreme Court struck down tariff authority, with replacement tariffs amounting to $1,500 average tax increase per household. These are self-inflicted wounds creating cascading disruption that stress tests portfolio construction. |
Supply Chain Energy Security Trade Policy Risk Management Disruption | |
Infrastructure SpendingBrookfield Renewable secured landmark power purchase agreements with Microsoft (10.5 GW) and Google (3 GW), directly connecting clean energy infrastructure to AI data center buildout. The company delivered record 8 GW of new capacity in 2025 with $10 billion in planned growth capital over five years across multiple technologies. |
Clean Energy Data Centers Power Purchase Agreements Growth Capital Utilities | |
| 2025 Q4 |
Small CapsSmall-cap stocks underperformed large-cap stocks during the quarter. Value style stocks outperformed growth-style stocks across the market-capitalization spectrum. The fund focuses on investing in small-sized companies believed to be undervalued. |
Small Cap Value Undervalued |
FinancialsThe portfolio maintains significant overweight in financials sector relative to benchmark. Large positions in banks, financial services companies, and insurers are maintained while avoiding mortgage REITs and consumer finance. Analysis indicates continued positive inflection in net interest income. |
Banks Financial Services Insurance | |
Consumer DiscretionaryOverweight in consumer discretionary sector with focus on higher-quality, unique businesses targeting high-end consumers. Examples include Brunswick and Birkenstock as high-quality global consumer brands. Specialty retail exposure includes marine dealers and Bath & Body Works. |
Consumer Brands Specialty Retail High End | |
IndustrialsIndustrials remains attractive and the fund continues to be overweight relative to benchmark. Higher-quality industrials including machinery, distribution, and commercial services have demonstrated strong pricing power during inflationary environment. This pricing power coupled with strong unit demand has helped holdings return cash to shareholders. |
Machinery Distribution Pricing Power | |
| 2025 Q3 |
AIAI infrastructure buildout is creating massive power demands that are forcing the energy transition. Microsoft and Google have committed over $100 billion in combined data center capex through 2026. The fund is positioning ahead of the infrastructure bottleneck in grid-scale storage, power management semiconductors, and modular nuclear solutions. |
Data Centers Infrastructure Power Semiconductors Energy |
Energy TransitionThe immense power consumption of AI and data centers has become the most powerful forcing function for the energy transition, transforming clean power from an environmental goal into an immediate economic requirement. This creates opportunities in next-generation energy sources and efficiency innovations. |
Clean Energy Power Infrastructure Efficiency Grid | |
CybersecurityRansomware poses systemic risk to critical infrastructure from hospitals to financial institutions. Companies providing cyber resilience platforms and Zero Trust security solutions are becoming essential infrastructure for operational continuity and economic stability. |
Ransomware Zero Trust Data Protection Enterprise Security Resilience | |
Electric VehiclesThe transition to electric mobility requires complete ecosystem development including autonomous driving technology, charging infrastructure, and mass market accessibility. Companies building smart EV technology and supporting infrastructure are creating safer, more efficient transportation systems. |
Autonomous Driving Charging Transportation Mobility Infrastructure | |
ChinaChina's manufacturing dominance in green transition technologies has created an electrostate spanning renewable energy hardware, energy storage, and electric transportation. This creates both dependency risks for Western supply chains and investment opportunities in Chinese electrostate leaders. |
Manufacturing Supply Chain Green Technology Trade Geopolitics |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| May 11, 2026 | Fund Letters | Greenalpha Investment | TSM | Taiwan Semiconductor Manufacturing | Semiconductors | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | 2nm process, Advanced Manufacturing, AI infrastructure, Equity, foundry services, semiconductors, Taiwan, technology leadership | Login |
| May 11, 2026 | Fund Letters | Greenalpha Investment | LRCX | Lam Research Corporation | Semiconductor Equipment & Materials | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | 3D NAND, AI infrastructure, Deposition Tools, Equity, Etch Technology, HBM Memory, Manufacturing Complexity, semiconductor equipment | Login |
| May 11, 2026 | Fund Letters | Greenalpha Investment | BEPC | Brookfield Renewable Holdings Corp | Utilities - Renewable | Electric Utilities | Bull | New York Stock Exchange | AI infrastructure, Clean power, data centers, energy storage, Equity, Hydroelectric, renewable energy, Solar power, Wind power | Login |
| May 11, 2026 | Fund Letters | Greenalpha Investment | IBM | IBM | Information Technology Services | IT Services | Bull | New York Stock Exchange | AI infrastructure, Data Streaming, Enterprise software, Equity, Hybrid Cloud, Quantum Computing, Red Hat OpenShift, Scientific Computing | Login |
| May 11, 2026 | Fund Letters | Greenalpha Investment | HASI | HA Sustainable Infrastructure Capital | Asset Management | Specialized Finance | Bull | New York Stock Exchange | Battery Storage, Clean Energy Financing, Distributed Generation, energy transition, Equity, Investment-Grade Counterparties, renewable energy, Sustainable Infrastructure | Login |
| Oct 13, 2025 | Fund Letters | Garvin Jabusch | NET | Cloudflare Inc. | Information Technology | Software | Bull | NYSE | Ai edge, cybersecurity, energy efficiency, SaaS, Scalability, Sustainability, Zero trust | Login |
| Oct 13, 2025 | Fund Letters | Garvin Jabusch | AVGO | Broadcom Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI, cloud infrastructure, Diversity, energy efficiency, Governance, semiconductors, Vmware | Login |
| Oct 13, 2025 | Fund Letters | Garvin Jabusch | RBRK | Rubrik Inc. | Information Technology | Software | Bull | NYSE | AI, cybersecurity, Microsoft partnership, Ransomware, resilience, SaaS, Zero trust | Login |
| Oct 13, 2025 | Fund Letters | Garvin Jabusch | XPEV | XPeng Inc. | Consumer Discretionary | Automotive | Bull | NYSE | AI, autonomous driving, Electric Vehicles, Ev infrastructure, Mass market, mobility, Partnerships | Login |
| Oct 13, 2025 | Fund Letters | Garvin Jabusch | NET | Cloudflare Inc. | Information Technology | Software | Bull | NYSE | Ai edge, cybersecurity, energy efficiency, SaaS, Scalability, Sustainability, Zero trust | Login |
| Oct 13, 2025 | Fund Letters | Garvin Jabusch | AVGO | Broadcom Inc. | Information Technology | Semiconductors | Bull | NASDAQ | AI, cloud infrastructure, Diversity, energy efficiency, Governance, semiconductors, Vmware | Login |
| Oct 13, 2025 | Fund Letters | Garvin Jabusch | RBRK | Rubrik Inc. | Information Technology | Software | Bull | NYSE | AI, cybersecurity, Microsoft partnership, Ransomware, resilience, SaaS, Zero trust | Login |
| Oct 13, 2025 | Fund Letters | Garvin Jabusch | XPEV | XPeng Inc. | Consumer Discretionary | Automotive | Bull | NYSE | AI, autonomous driving, Electric Vehicles, Ev infrastructure, Mass market, mobility, Partnerships | Login |
| TICKER | COMMENTARY |
|---|---|
| TSM | TSMC has commenced mass production of 2nm chips using nanosheet Gate-All-Around transistors—the most significant architectural leap in a decade—with initial yields already reaching 70-80%, well ahead of any competitor. The N2 node delivers a 15% performance boost at the same power or a 25-30% reduction in power consumption versus 3nm, and TSMC expects to reach 100,000 wafers per month of 2nm capacity by year-end 2026. TSMC is effectively the world's sole manufacturer of bleeding-edge silicon at scale, with 38% of the $320 billion global foundry market and a technology lead that Samsung and Intel cannot close in the near term. With $56 billion in planned 2026 capex and pricing power to raise wafer prices 5-10% across all sub-5nm nodes, TSMC's competitive moat is widening, not narrowing. |
| LRCX | Lam Research is the main supplier of the etch and deposition tools required to build AI's physical infrastructure. As chips go three-dimensional—through HBM memory stacking and Gate-All-Around transistor architectures—the number of manufacturing steps per wafer explodes, and Lam's share of those steps grows disproportionately. Revenue from HBM-related tools grew over 50% year-over-year, and the company's cryogenic etch technology won the 2025 SEMI Award for North America for enabling the 3D NAND density gains that underpin AI data storage. The structural beauty of Lam's business is that every node shrink makes customers more dependent on its equipment, not less. |
| BEPC | Brookfield Renewable operates one of the world's largest clean energy portfolios at 47 GW with a 227 GW development pipeline, and has secured landmark power purchase agreements with Microsoft (10.5 GW—the largest renewable energy deal in history) and Google (3 GW of hydroelectric power—the largest hydro PPA ever). These deals directly connect Brookfield's asset base to the AI data center buildout, converting clean energy infrastructure into essential AI infrastructure. The company delivered record 8 GW of new capacity in 2025, a 20% increase year-over-year. The business model is a compounding machine: 10%+ annual FFO per share growth, 5-9% annual dividend increases (raised again for 2026), and $10 billion in planned growth capital over five years across hydro, wind, solar, storage, and nuclear services. |
| IBM | IBM has published the industry's first reference architecture for quantum-centric supercomputing, a blueprint that integrates quantum processors alongside GPUs and CPUs into a unified computing environment for tackling problems in chemistry, materials science, and optimization that no classical approach can solve alone. The company states 2026 will mark the first time a quantum computer outperforms all classical-only methods on a real scientific problem. IBM's hybrid cloud and AI platform, anchored by Red Hat OpenShift, continues to serve as the enterprise backbone for thousands of government and corporate entities in financial services, telecom, and healthcare. |
| HASI | HASI is a purpose-built investment vehicle for the energy transition, deploying capital across utility-scale solar, wind, battery storage, distributed generation, clean transportation, and ecological restoration. With over $16 billion in managed assets and strategic partnerships with developers like Clearway Energy, AES, Sunrun, and Invenergy, HASI provides flexible capital solutions—from senior debt to structured equity—that accelerate clean energy deployment at scale. HASI's portfolio generates long-term, recurring cash flows from contracted clean energy assets with predominantly investment-grade counterparties and weighted average contract lives exceeding a decade. |
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