Every December I get that itch. The calendar flips closer to a new year, the market starts pricing in fresh narratives, and suddenly the portfolio that felt bulletproof in July looks a little too concentrated, a little too complacent. This year was no different—actually, it felt more urgent than usual.
The megacap tech trade that carried so many of us through 2024 and most of 2025 is finally showing cracks. Breadth is improving, money is rotating, and if you wait for the mainstream to scream “rotation!” you’re already late. So last week I hit the button on one of the biggest re-allocations I’ve done in years.
Here’s the plain-English version of what changed, why it changed, and the five individual names that saw the biggest swings in my growth-oriented book. Think of this as a peek over my shoulder while the paint is still wet.
A Major Sector Shake-Up First
Before diving into single stocks, the macro move mattered more than anything else. We slashed consumer discretionary exposure by a whopping 9.5 percentage points—basically taking it from overweight to almost exactly benchmark weight.
Yes, that includes the usual suspects: Amazon, Tesla, Home Depot. Fantastic companies, but the valuations got ahead of reality and the consumer is finally starting to feel the pinch of higher rates lasting longer than anyone expected.
That capital didn’t go on vacation. We plowed it straight into materials, utilities, energy, and health care—four sectors that rarely get love in a growth sleeve but suddenly look like the smartest places to hide in plain sight.
The Five Individual Moves That Tell the Real Story
Sector shifts are nice, but the sharp end of the sword is always the names you actually own. These are the five positions that moved the needle the most.
1. Saying Goodbye (Almost) to Netflix
I’ve been riding Netflix since spring of 2023. It’s been a fantastic trade—multiple doubles, great memories. But great trades have expiration dates.
Over the last two rebalances I trimmed from 3% down to 1%, and this time I’m preparing to zero it out completely unless the stock can hold the $82–85 zone that’s acted as support all year.
The password-sharing crackdown juice is gone. International growth is decelerating, content spend is still massive, and now there’s regulatory overhang from partnership talks. Sometimes the hardest thing to do is let a winner become a spectator.
It hurts a little, but capital has to work. Sitting in a name that’s tied up in red tape while the rest of the market runs isn’t my style.
2. Going Market-Weight Apple—Finally
Apple has been the one megacap I’ve consistently underweighted since we launched the strategy in 2021. My average position was around 3.5% while the S&P carries it at roughly 6.6%.
Not anymore. We brought it all the way up to 6.5% after the stock blasted through $260—former all-time high resistance that had capped it for ages.
Why now? Simple. iPhone 17 demand looks insane heading into the full Apple Intelligence rollout in 2026, and unlike some of the hyperscalers throwing tens of billions at AI with nothing to show yet, Apple is being remarkably disciplined on spend. There’s still 1.5 billion devices in the installed base waiting for the killer feature set. That’s a runway most companies would kill for.
3. Doubling Down on Bloom Energy (and Loving the Volatility)
I wrote about Bloom Energy a few months back and admittedly missed the very first leg. Kicking myself a little, but we started building in September, added again in November, and now sit at a 2% stake.
For the uninitiated: Bloom makes fuel-cell systems that deliver clean, continuous, off-grid power. Translation—the exact kind of baseload solution data centers are desperate for as AI power demand explodes.
- High beta? Absolutely (around 2.5).
- Pulls back hard into the 20- and 50-day moving averages on any given week? Like clockwork.
- But the fundamental story? Still one of the purest ways to play the AI infrastructure buildout without buying another semiconductor name at 45× sales.
Two percent feels right for now. If those moving averages hold on the current pullback, I’ll gladly take it to 3%.
4. Lemonade — The AI InsurTech That’s Actually Working
I first flagged Lemonade when it was bumping its head under $61 resistance. Since then it’s ripped higher, and for good reason.
This isn’t another fintech darling burning cash on customer acquisition. Lemonade was built from scratch on artificial intelligence—pricing, claims processing, risk selection, everything. The loss ratios are improving fast, the path to underwriting profitability is finally visible, and the market is starting to price in what happens when a lean tech company scales against 100-year-old incumbents carrying massive legacy overhead.
In my view this is what disruption actually looks like when the rubber meets the road. Position size is still modest, but it’s one of the few financial names I’m genuinely excited about for the next cycle.
5. AngloGold Ashanti — Riding the Gold Miner Re-Rating
Gold has been the trade that refuses to die in 2025, and the miners are finally catching up. We’ve been adding materials exposure for several rebalances, but this time we put real money to work with a fresh 2% position in AngloGold Ashanti.
Institutional accumulation is obvious on the tape, the U.S. dollar remains below key resistance despite rising yields, and gold itself still looks constructive. Add in the tangential benefit from copper and other metals feeding the same AI infrastructure theme, and you have a commodity complex that feels very different from the 2022 version.
Commodities in a growth portfolio used to feel heretical. In 2026 it might be table stakes.
Putting It All Together
Step back and the picture gets clearer. We’re lightening up on yesterday’s winners that face near-term headwinds (consumer discretionary, streaming maturity), staying invested in the one megacap still executing flawlessly (Apple), and planting flags in the under-owned areas that should benefit from AI power shortages, commodity reflation, and genuine technological disruption in sleepy industries.
None of this is set-it-and-forget-it. Markets morph, narratives shift, and I’ll be the first one trimming or adding when the evidence changes. But for right now, heading into 2026, this feels like the highest-conviction version of offense-with-a-seatbelt I can build.
Sometimes the best trades aren’t the sexiest ones. They’re the ones that make you a little uncomfortable because they force you to sell names you love and buy sectors you’ve ignored for half a decade.
That discomfort? That’s usually where the edge lives.
Here’s to a prosperous—and interestingly different—2026.
