Quantum Computing

This basket targets exposure to the quantum computing ecosystem, which is projected to grow from approximately $1.88 billion in 2026 to $19.44 billion by 2035 at a CAGR of 29.73 percent, driven by breakthroughs in hardware scalability, hybrid quantum-classical applications, and demand from cryptography, pharmaceuticals, materials discovery, defense, and optimization use cases. It holds 18 names across technology hardware, software, and diversified tech sectors, with concentrated exposure to pure-play innovators. The investment logic centers on capturing the transition from experimental quantum systems to commercially viable solutions, where software platforms accelerate application development independent of specific hardware modalities, while hardware and infrastructure leaders provide the foundational qubits and integration layers needed for fault-tolerant computing at scale.

Key risks include prolonged technical challenges in achieving error-corrected logical qubits, high cash burn rates among early-stage companies, and dependency on sustained government and enterprise funding amid competing priorities in AI and classical computing. With no specific warnings flagged, the basket maintains an effective N of 9.5, indicating focused but diversified conviction. The highest-conviction position is ZPTA at 19.6 percent weight with an exposure score of 78, as this pure-play hardware-agnostic quantum software company offers differentiated access to the critical software layer—supported by a robust patent portfolio exceeding 60 grants and pending, subscription-based platforms like Orquestra, and proven work with Fortune 500 and government clients—positioning it to capture value as quantum applications mature beyond hardware constraints.