Robotics and Automation

The Robotics and Automation basket targets companies developing and commercializing technologies that enable physical intelligence, precision operations, and autonomous systems across industries facing labor shortages and efficiency demands. It comprises 20 names with an effective N of 19.3, spanning healthcare devices, surgical systems, digital laparoscopy, lidar sensors, and related automation hardware. Top positions include PRCT at 6.6% weight with an 83 exposure score, ASXC at 6.6% with 83, and OUST at 6.4% with 80. The investment logic rests on structural tailwinds: the global robotics market is projected to expand from approximately $52 billion in 2025 to nearly $200 billion by 2035 at a 14.5% CAGR, while industrial robot installations continue rising and sectors like surgical robotics and perception systems address acute needs for minimally invasive procedures and reliable environmental sensing amid demographic shifts and supply chain pressures.

Key risks include high upfront capital requirements that can delay ROI, technical challenges in scaling from controlled to unstructured environments, cybersecurity vulnerabilities in connected systems, and cyclical exposure to capital spending slowdowns or regulatory hurdles in medical and autonomous applications. The highest-conviction position is PRCT due to its differentiated Aquablation technology, which delivers image-guided, heat-free robotic prostate treatment with strong clinical outcomes and expanding adoption in urology, positioning it for outsized revenue growth as the installed base scales in a large addressable market with limited direct competition.