Monthly Portfolio Review

May 2026

Hi Apes!🍌

This is our monthly portfolio review, where we look at the performances of our respective portfolios and deep dives. For the new apes, we have the:

• Banana Index: Best ideas within a global, unconstrained portfolio (15-25 stocks)

• Small Banana Index: Best ideas limited to global companies under US$10 billion in market capitalization (15-25 stocks)

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As seen from our latest chartbook, anything outside of Semiconductors/AI Hardware has been decimated in the last 2 months. Positioning (or chasing) into the most crowded trades is the most extreme it has ever been over the last 10 years. This comes at a time where all signs are indicating a peak in growth rates for hyperscalers’ capital expenditure revisions (the ‘tap’ from which ‘bottlenecks’ flow) - what can go wrong?. In spite of this, our portfolios (with 0 AI hardware/semiconductor exposures) continue to keep pace with the indices. We are now 25-30% exposed to thermal and metallurgical coal across both the portfolios having upweighted them substantially after our latest deep dive - this is the current home run opportunity we see while the herd continues to chase the next ‘bottleneck’ with diminishing returns!

Portfolio Rules

1. There is no day-trading, leverage, or options in these portfolios. As with my investment philosophy, I seek the best ideas with favourable risk/reward over 1-3 years. Also, leverage is usually where portfolios go to die :/ (don’t ask me how I know this)
2. Maximum of 10% cash position in each portfolio
3. There will be tactical buys/sells (maybe a few times per month) and I send these through the chat as and when I make the changes (remember to join the chat here if you haven’t)