Core vs Satellite Holdings
Classifies every holding by its structural role. Companion to Portfolio Construction Overview.
Definitions#
- Core: highest-conviction, largest-weight, deepest-moat, most central to the thesis. The portfolio's foundation; sold only on thesis impairment.
- Core-Satellite: important + sizeable, but with more cyclicality or a more specific role than the absolute core.
- Satellite: smaller, higher-variance, theme-completing or diversifying; sized as asymmetric bets or hedges.
The Classification#
| Holding | Class | Role | Why this class | |, -|, -|, -|, -| | NVIDIA | Core | AI Compute | The keystone; deepest moat (CUDA); demand engine. | | TSMC | Core | AI Foundry | Irreplaceable chokepoint. | | Micron Technology | Core | AI Memory | HBM oligopoly; top stated weight. | | Microsoft | Core | AI Infra + Enterprise | Quality anchor; lowest-vol AI. | | Amazon | Core | AI Cloud | AWS + ads engine. | | Alphabet | Core | AI Full-stack | Cheapest mega-cap AI. | | Meta Platforms | Core | AI Consumer | Clearest AI monetisation. | | Marvell Technology | Core | AI Networking | NVIDIA-hedge + interconnect. | | ServiceNow | Core-Satellite | AI Workflow | Highest-quality software compounder. | | Constellation Energy | Core-Satellite | AI Power | Signature 2nd-order trade. | | Vistra | Satellite | AI Power | Higher-beta power. | | Disco Corporation | Satellite | Semicap | Deep-upstream Japan diversifier. | | Snowflake | Satellite | AI Data | Higher-variance data bet. | | Datadog | Satellite | AI Monitoring | Cloud/AI usage toll. | | CrowdStrike | Satellite | AI Security | Endpoint security leader. | | Zscaler | Satellite | AI Security | Network security leader. | | Salesforce | Satellite | AI CRM | Value-tilted AI software. | | Netflix | Satellite | Digital Media | Consumer-defensive diversifier. | | Roblox | Satellite | Future Consumer | Asymmetric optionality. | | Adyen | Satellite | Payments | Premium fintech compounder. | | PayPal | Satellite | Payments | Value/turnaround. | | Tencent | Satellite | China Internet | China anchor + value. | | MercadoLibre | Satellite | LatAm Digital | EM compounder. | | Li Ning | Satellite | China Consumer | Value/consumer diversifier. | | BYD | Satellite | Electrification | EV/battery thematic. | | BioNTech | Satellite | Healthcare | Asymmetric optionality. | | IQVIA | Satellite | Healthcare Data | Wide-moat diversifier. |
Reading The Shape#
- 8 Core names form the AI infrastructure + hyperscaler return engine, likely the bulk of portfolio weight + risk.
- 2 Core-Satellite (ServiceNow, Constellation) bridge into software + power.
- 17 Satellites provide thematic completion, geographic spread, + diversification, a long, deliberate tail.
This is a "concentrated core, diversified tail" structure: conviction is expressed through the core's weight; resilience through the satellites' breadth.
Linked Notes#
- Portfolio Construction Overview · Return Drivers vs Hedges · Overlap & Diversification Map · Position Sizing Framework · Holdings Master Table · Knowledge Graph