Monthly Investor Letter
January 2026: Focusing on Results, Not Hype
The Market Shift: Moving from Stories to Reality
The first month of 2026 has confirmed our view that the market is finally moving away from speculative “green” promises and toward companies that provide the physical infrastructure the world actually needs. While the S&P 500 reached a new record high of 7,000 this month, the real story was the shift in leadership.
Investors are beginning to realize that “software” alone isn’t enough; you need engines, power grids, and cooling systems to make the modern economy work.
Industrial Strength vs. Tech Bubbles
Our focus on “boring” but essential businesses is paying off.
Building the AI Future: We aren’t chasing unproven AI startups. Instead, we are invested in companies like Caterpillar, which provides the power systems required to run AI data centers. With a record backlog of orders, they have more work than they can currently handle, giving us great confidence in their future earnings.
Exposing the Hypocrisy: We continue to bet against companies where the marketing doesn’t match the math. Our position against Tesla is based on the reality that their valuation is still far higher than their actual profits justify, especially as the world moves toward more efficient and profitable business models.
Our Balanced Approach
We continue to manage your capital by balancing three distinct areas:
Safety: We hold stable, large companies that produce consistent cash flow, acting as a shield during market volatility.
Value: We search for companies that the market has ignored or mispriced, such as the insurance sector, where we see significant opportunities for growth.
Active Gains: We actively bet against overvalued companies that rely on cheap debt or flashy PR rather than real profits.
Looking Ahead
As we move into February, we are keeping a close eye on inflation and potential new trade tariffs, which could affect company margins. However, our 20-point research framework ensures we stay focused on the facts rather than the noise of the news cycle.
Helix Research
We preserve wealth by ignoring the noise. We generate returns by exposing the truth.