Portfolio Updates

Perfer H22.SI over CYD as a Data Center Capex Shovel Play

We’ve cashed out our entire position in CYD at ~$21.00 (vs. our ~$11.00 entry) ahead of tomorrow’s results, locking in a solid gain. Why? The stock soared past our base case target of $19.50—set in our first Substack note [Link]—in less than a month.

While that’s shy of our bull case ($26.10), the speed and risk profile screamed 'non-fundamental tailwinds.' We’ll take the win, thank the market gods, and move on: we focus on maximizing risk/reward, and when the facts change, we change.

Where to next? We’ve rotated into H22.SI, profiled here [Link], and another AI data center play we’re keeping under wraps for now as we build our conviction. Here’s the thinking: H22, CYD’s parent company, offers a backdoor into CYD’s value at a steep discount. With ~50% of H22’s worth tied to its 45% stake in CYD, it’s lagged behind CYD’s recent run. H22’s net asset value (NAV) suggests it should trade near $1.30—30% above today’s price. In other words, buying H22 now is like time-traveling back to snag CYD at $15.00, assuming the market catches up.

CYD kicked off this Substack as our highest-conviction pick, and we’re proud of how it played out. Stick around—we’ll keep digging up intriguing companies to share.