Tracking 26 Signals Across 11 of Our Portfolio Investment Themes
Let’s scan through the headlines for the stories of the week that speak to our Pro Portfolio holdings.
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The world’s major economies are getting old, fast. More Americans are using AI everyday. Many consumers are worried about money. And hackers find a huge loophole in Meta (Meta).
Those are just some of the signals we have collected over the week, so let’s run down the list of news reports that speak to our Pro Portfolio.
If you’ve come across a signal we should know about, be sure to drop a link in the Comments section below.
Aging Population
Japan’s population is 123 million and shrinking. Its population aged 75 and up is 21.5 million – 17 percent and rising. Age 65 and up: 36.1 million – 29 percent and rising, 65 and over. This actual and potential elderly care burden – 57.6 million and rising – falls on the 34.5 million (and declining) population segment aged 45-64 Read more here
China’s rapidly aging population is fueling a new consumer trend for “senior toys”. With over 300 million citizens aged 60 or older, families are increasingly turning to specialized games, puzzles and therapeutic toys to combat cognitive decline and elderly isolation. However, industry insiders warn that the emerging market is still failing to meet the complex needs of older adults. Read more here
Hospitalization rates increase significantly as the population in the US continues to age. Older patients tend to have more chronic conditions, frailty, and less independence in their daily lives.And that has great implications for hospitals, both for admissions and the risk for readmission. Read more here
Position: Labcorp (LH); Welltower (WELL)
Artificial Intelligence
The number of Americans who use AI daily has risen to 24% (+10 points YoY). While a slim majority still start with traditional search engines (53%), nearly one in five (19%) now begin with an AI assistant. Among daily AI users, AI has overtaken search engines (37% start with AI vs. 32% with search). Read more here
Google has introduced new features for its Gemini app designed for smaller businesses. “Rolling out globally this month, these updates transform Gemini into a deeply knowledgeable, in-pocket partner that natively understands your business and helps you get more done,” the tech giant wrote on its blog Wednesday (June 10). Read more here
Google processes five trillion searches each year. The firm launched AI Overviews in 2024 to provide automated summaries at the top of search results. According to software firm Ahrefs, 55% of all Google searches now generate one of these AI-produced responses. Read more here
Position: Alphabet (GOOGL), Amazon (AMZN), Arista Networks (ANET), Axon (AXON), Meta (META), Microsoft (MSFT), Palantir (PLTR), SuRo Capital (SSSS)
Cash-Strapped Consumer
The New York Fed’s May Survey of Consumer Expectations found that consumers’ views regarding their financial well-being dwindled last month. The share of households reporting that their current financial circumstances had soured compared to a year ago hit its highest level since January 2023, with 43.7% of consumers saying they were somewhat or much worse off. Read more here
According to a survey of 1,010 US adults conducted by operations software company DOSS this month, 60% of consumers said they stopped buying a brand they were loyal to this year due to price increases, and 70% said they were less brand loyal now than they were last year. A 16% price hike is the “breaking point” that pushes consumers to trade down to a cheaper alternative or cut back on the volume they buy (though baby boomers on average make the shift at a 12% increase). Read more here
Welcome to the New York rental market, where the median asking rent hit $3,616 in the first quarter this year, 20% above pre-pandemic levels, according to Realtor.com. To manage on a starting salary, some young professionals are turning to convents. Read more here
Position: Amazon, Costco (COST), TJX Companies (TJX)
Cybersecurity, Data Privacy & Digital Identity
In May, a group of hackers discovered a bug in a Meta customer service tool that allowed anyone to use an artificial-intelligence-powered chatbot to reset the passwords for Instagram accounts. All the hacker had to do was ask the chatbot to change someone’s password — and it would be done. Roughly 34,000 Instagram accounts were affected, including the accounts of the home security monitoring company SimpliSafe and a senior official in Mr. Trump’s Space Force department, according to internal Meta documents viewed by The New York Times. Read more here
Oracle PeopleSoft servers are being targeted in ongoing data theft attacks by the ShinyHunters extortion gang, which claims to have stolen data from over 100 organizations… While Oracle has not publicly disclosed any information about these attacks, cybersecurity researcher “Michael R” found several exposed online directories containing tooling related to this attack. Read more here
ServiceNow is warning about a security incident after attackers exploited an unauthenticated access flaw through a vulnerable API endpoint, allowing them to query data from customer instances. The company quietly warned impacted customers through a support bulletin and direct support cases after detecting “anomalous activity” related to the issue. Read more here
The University of Nottingham has been rocked by a major cyberattack that has exposed students’ personal and financial data and could disrupt exam marking. Hackers gained access to the Russell Group university’s student records system at the end of May, according to staff, potentially exposing their contact information, course information, financial details stored within the software, and personal information like NI numbers and protected characteristics. Read more here
Position: Alphabet, First Trust Nasdaq Cybersecurity ETF (CIBR), Microsoft
Digital Infrastructure
Computing power has become the lifeblood — and a key limiting factor — of the race to develop AI, as the push to integrate the technology into daily life clashes with the finite supply of one of its most crucial inputs. Often referred to simply as “compute,” the processing power that forms the foundation of AI is limited by physical infrastructure: the chips, servers and data centers that take up space in the real world. Read more here
Capital expenditures, largely a measure of data center spending, were about $16.5 billion in the period ended May 31, bringing the annual total to $55.7 billion — higher than Oracle’s projection for $50 billion in spending. The company expects to spend about $70 billion on net capital expenditures in the current fiscal year, which ends in May 2027, Chief Financial Officer Hilary Maxson said during a conference call after the results were released Wednesday. The reported figure will be $20 billion to $25 billion higher due to prepayment for some components, she said. Read more here
Position: Alphabet, Amazon, Arista Networks, Broadcom (AVGO), Eaton (ETN), Marvell (MRVL), Meta, Microsoft, Nvidia (NVDA).
Digital Lifestyle
Advertising revenue at Netflix has risen rapidly — and is now expected to double to $3 billion globally this year from $1.5 billion in 2025, and to comprise 10% of all connected TV advertising (CTV) spend by 2030, according to projections from WARC Media. The advertising research company estimates that Netflix’s current 3.5% share of global CTV will rise to 9.2% by 2027, to hit $8 billion in ad revenue by 2030. Read more here
Enter subscriptions. Chief Executive Mark Zuckerberg’s latest bid to diversify Meta’s revenue sources is to charge some of its 3.5 billion daily users a monthly fee for extra features on Facebook, Instagram and WhatsApp. It is also testing subscriptions for an AI chatbot. In tandem, Zuckerberg is trying to sell businesses on the idea of using Meta’s AI agent to do such things as answering customers’ questions, booking appointments and even closing sales. Read more here
Position: Alphabet, Amazon, Apple (AAPL), Meta, Netflix (NFLX), SuRo Capital
Energy Pain Point
In recent years, calls for emissions-free, reliable energy pushed nuclear power into the climate conversation. Interest has accelerated as the tech industry touts the technology as a solution to the massive electricity demands of artificial intelligence. Now, about 60% of U.S. adults say they favor adding more nuclear power plants, according to a Pew Research Center survey last year, up from 43% in 2020. Read more here
U.S. power consumption, which hit its second straight annual record high in 2025, will rise further in 2026 and 2027, driven by AI-hungry data centers and electrification, the Energy Information Administration said in its Short-Term Energy Outlook on Tuesday. The EIA projected power demand will rise from a record 4,195 billion kilowatt-hours (kWh) in 2025 to 4,271 billion kWh in 2026 and 4,397 billion kWh in 2027… Electricity demand growth is led by an increase in the commercial sector, which is expected to outpace residential demand in 2026 for the first time on record, the agency said. Read more here
Position: Eaton
Homebuilding & Materials
At a moment many U.S. homebuilders are grappling with soft demand, affordability fatigue, fragile consumer confidence, cancellation anxiety, incentive creep, and elevated cost-of-living pressures weighing on would-be buyers, it’s hard to imagine, let alone appreciate, a silver lining. However, strategic leaders in this business know something others sometimes forget: Downturns reveal operational truths that can create renewed – sometimes redoubled – opportunities when markets recover. Read more here
Luxury Buying Boom
The new crews selected for NASA’s Artemis missions will be showing up in space in a new kind of style. Literally: They’ll be wearing Prada. Or so it was revealed on Sunday morning, just days before the announcement of the Artemis III team, when the Italian brand hosted a different kind of launch at its store in the SoHo neighborhood of Manhattan. In partnership with Axiom Space, Prada unveiled its new-look Liquid Cooling and Ventilation Garment (or L.C.V.G.), which NASA astronauts will wear under their Axiom Extravehicular Mobility Unit spacesuit (or AxEMU), also from Axiom Space x Prada, during their lunar missions and when they eventually walk on the moon. Read more here
Even as the world’s second-largest economy contends with a property crisis and sluggish consumer spending, Chinese shoppers are flocking to Made-in-China luxury brands, drawn by more reasonable prices, cutting-edge technology and a cultural sensibility finely tuned to local tastes. The shifting sensibilities have unfolded alongside a rising nationalism and a deepening pride in the country’s economic ascent in recent decades. Read more here
Rebuilding America
Infrastructure investing is a hot topic, with data-center buildouts dominating the discussion. But focusing solely on data centers overlooks the broader opportunities in the theme… That’s backed up by a 2025 report from McKinsey, which says a cumulative $106 trillion in investments is needed to meet global infrastructure requirements through 2040, both in upgrading traditional core assets, but also for emerging demand for charging stations, fiberoptic networks, and more. (Barron’s)
Position: United Rentals (URI)
Safety & Security
The St. Cloud Police Department is working to take steps to eliminate any potential language barriers while responding to calls. They and the city of St. Cloud are requesting funding from the Florida Department of Law Enforcement’s Immigration Enforcement Grant program to get the department live translating services for their body worn cameras. They’ve applied for around $171,000 worth of grant funding to implement the Axon Body Camera AI assistant’s live translation. Read more here
Glenwood Springs City Council approved a 10-year contract Thursday for a package of Axon public safety technology, moving ahead with a bundled system that city officials said will save money, improve emergency response and give the city more control over law enforcement data. Read more here
A new AI tech is bringing real time language translation to Stockton body cameras, an upgrade officials say would help bridge language barriers between officers and residents. On Tuesday, the Stockton Police Department announced the integration of a new, real-time translation feature into the more than 300 body cameras issued to in-the-field officers. The new tool, said Stockton Police Chief Stanley McFadden during a morning news conference, would eliminate delays in providing accurate and immediate on-scene translations. Read more here
Artificial intelligence software is being integrated into Heber City policing. Police Chief Parker Sever said the technology has been a boon. One program generates police reports, which Sever pointed to as an example. The software uses body-camera footage to create a report after an enforcement action. Officers review the reports, but Sever said the auto-generated versions are high-quality… According to Sever, another new software widely popular among officers provides live-time translation during traffic stops and similar activities. The service is similarly delivered through body cameras. Read more here
Position: Axon, Palantir
The Strategies Behind Our Thematic Models
Aging of the Population – Capturing the demographic wave of the aging population and the changing demands it brings.
Artificial Intelligence – Software, chips, and related companies that facilitate the collection and analysis of large data sets and autonomous generation of solutions given non-machine language prompts.
Cash-Strapped Consumer – Companies poised to benefit as consumers stretch the disposable spending dollars they do have.
Cybersecurity – Companies that focus on protecting against the penetration of digital networks and the theft, ransom, corruption, or destruction of data.
Data Privacy & Digital Identity – Companies providing the tools and services that verify authorized users and safeguard personal data privacy.
Digital Infrastructure & Connectivity -The buildout and upgrading of our Networks, Data Storage Facilities, and Equipment.
Digital Lifestyle – The companies behind our increasingly connected lives.
Digital Payments – This model focuses on companies benefiting from the accelerating structural adoption of digital payments and financial technology (FinTech).
Energy Pain Point – Companies poised to prosper from rising power demand.
EV Transition – Capturing the transition to EVs and related infrastructure from combustion engine vehicles.
Guilty Pleasure – Companies that produce/provide food and drink products that consumers tend to enjoy regardless of the economic environment and potential long-term health hazards associated with excessive consumption.
Homebuilding & Materials – Ranging from homebuilders to key building product companies that serve the housing market, this model looks to capture the rising demand for housing, one that should benefit as the Fed returns monetary policy to more normalized levels.
Luxury Buying Boom – Tapping into aspirational buying and affluent buyers amid rising global wealth.
Rebuilding America – Turning the focused spending on rebuilding US infrastructure into revenue and profits.
Safety & Security – Targeted exposure to companies that provide goods and services primarily to the Defense and security sectors of the economy.
At the time of publication, the Pro Portfolio was long LH, WELL, GOOGL, AMZN, ANET, AXON, META, MSFT, PLTR, SSSS, COST, TJX, CIBR, AVGO, ETN, MRVL, NVDA, NFLX, AAPL, URI.
