Edge Computing

This basket targets the edge computing theme, which processes data near its source to minimize latency, reduce bandwidth demands, and enable real-time AI and IoT applications across industrial automation, content delivery, and neuromorphic processing. It comprises 20 names diversified across technology hardware, software, and semiconductors, with an effective N of 18.5 indicating moderate concentration. The investment logic centers on the structural shift from centralized cloud computing toward distributed architectures, driven by exploding data volumes from 5G, AI inference, and connected devices. The global edge computing market, valued at approximately $18-55 billion in 2025 depending on scope, is projected to expand at CAGRs of 27-37% through the early 2030s as enterprises prioritize low-latency performance for applications like autonomous systems and smart infrastructure.

Key risks include an expanded cyber attack surface from decentralized devices, potential physical tampering or breaches at remote edge locations, and complex liability across multi-vendor ecosystems with varying security standards. Regulatory fragmentation around data privacy in cross-border deployments adds execution challenges, while technology obsolescence could pressure pure-play names amid rapid innovation cycles. The highest-conviction position is BRCHF at 7.1% weight with an exposure score of 98, as BrainChip delivers differentiated ultra-low-power neuromorphic chips optimized for always-on edge AI inference, positioning it to capture outsized share in power-constrained environments where traditional processors fall short on efficiency and real-time learning.