September Newsletter 2025
August 22, 2025
Portfolio Update
Dear Friends and Clients,
With Summer winding down and kids heading back to school, it is time to share thoughts about portfolio additions that are “built” to participate in the growing AI Revolution (with its many demands for power and storage). Participation in the Private Equity market becomes desirable, as publicly listed securities are being “over bought” as demand exceeds supply. With concerns about the declining value of the Greenback and opportunities to increase dividends, this makes Business Development Companies (BDCs) appealing. All of these identified changes have kept James and me very busy actively re-balancing all client portfolios one-by-one, in line with all individual Investment Policy Statements (IPSs).
We have met with many clients recently, and most are interested in hearing our thinking on these (and other) “Alternative Equity and Alternative Income” portfolio allocations that keep up with our ever-changing financial world. Our challenge is to stay “out front”, as we are not generally “blind followers” or influenced by the Robo trading of passive securities that has become so popular. Deep down, we remain steeped in fundamental analysis based on our requirements for revenues, profits, and dividends, all with the goal of safeguarding client nest eggs rather than exposing them to undue risk.
When you receive your September 30th Quarterly Portfolio Reports, your list of “Alternatives” investments will include most, if not all, of the following positions:
- Albemarle Corp. - Lithium and rare earth minerals needed for batteries for many applications.
- Blackstone Inc. - Private equity investments across a large gamut of opportunities.
- Constellation Energy Corp. - Safe and clean nuclear energy.
- Digital Realty Trust - Data centers for all things AI.
- Franco-Nevada Corp. - Financing for larger gold mining companies expanding to meet increasing demand for gold. They receive a “royalty interest” with associated cash flows and distributions to shareholders (backed by the gold that is mined). Really a hedge against the declining value of the dollar.
- Kinder Morgan Inc.- Clean burning natural gas supplying with much needed energy for economic growth and expansion.
- Rio Tinto - Copper mines that produce the main raw material needed for energy transmission.
- Teck Resources - Mining all raw materials required for technology to run and function.
- Blue Owl Capital - Secured loans to medium sized companies that have generally been excluded from mainstream banking opportunities by regulations and red tape.
We are firm believers that the “Alternative” seeds we have planted in the broadly diversified portfolio will grow into strong and contributing positions across the entire managed portfolio to continue the tradition of forward-looking investments for the long haul. Several of the above positions have already produced significant results on a year-to-date basis. I am expecting that the Domestic Equity Portfolio you are familiar with, which includes all the big tech names and tech users, will also continue its march forward and upward as the economy continues to grow and flourish (not to say that there are not some storm clouds on the horizon).
Lastly, I would be remiss to not acknowledge the many well wishes and positive thoughts and prayers being sent my way. I am now entering into the “therapy” stage of my cancer challenge. My many levels of “support” have been both encouraging and helpful for both me and Jeannie. All I can really say is THANKS FOR NG THERE!
In the meantime, please reach out to the entire IIM team as needed. They are there for you (and me) and I could not be luckier to have their empathic and energetic enthusiasm for both you and me.
I am looking forward to seeing you all “down the road”.
Sincerely,
Intelligent Investment Management, LLP
