Dilation Capital Management LP

2. Key Holdings

The portfolio is anchored by a mix of secular growth leaders and cyclical industrials.

• Top Position: NVIDIA (NVDA) remains the largest holding at $18.25 million (12.60%), despite a 12.2% reduction in shares during the quarter. This indicates a continued belief in the AI infrastructure theme, tempered by risk management or profit-taking.
• Industrials & Financials: D.R. Horton (DHI) ($13.39M) and Affirm Holdings (AFRM) ($13.11M) occupy the second and third spots, respectively. The addition of DHI signals a new tilt toward housing, while AFRM represents a continued bet on the fintech and consumer credit recovery.
• Notable Holdings: Canadian Pacific Kansas City (CP) and KKR & Co represent core holdings in the industrials and financial sectors, offering exposure to logistics and private equity alternative assets, respectively.
• Concentration Risk: The top five holdings account for approximately 48% of the total portfolio value, indicating that performance in these names will heavily influence overall returns.

3. Sector Allocation

The sector allocation underwent a distinct shift this quarter, moving away from a heavy industrial/industrial-tech mix toward a more balanced barbell between Technology, Financials, and Industrials.

• Technology (40.7%): This remains the largest sector, valued at $58.91 million. Exposure is broad-based, covering semiconductors (NVDA, AVGO), software (ORCL), and ad-tech (APP, MGNI).
• Financial Services (21.9%): Accounting for $31.71 million, this sector has gained prominence through positions in AFRM, KKR, and the new addition of COIN.
• Industrials (21.8%): Valued at $31.53 million, this sector maintains a strong presence via DHI, CP, and AXON.
• Unknown (12.1%) & Utilities (3.5%): The "Unknown" category ($17.57M), which includes Amrize Ltd and Nebius Group N.V., suggests a willingness to invest in international or newly listed entities that may not fit standard sector classifications yet. The Utilities allocation is now concentrated almost entirely in Talen Energy (TLN).