Picks

Given the current market environment, we are adopting a more conservative and selective approach to new positioning. Equity valuations across many sectors remain elevated, which limits the overall reward-to-risk profile until markets either strengthen on a fundamental basis or experience a healthier correction. Rather than offering multiple ideas for the sake of volume, we are prioritizing higher-conviction opportunities. As a result, this month we are highlighting one long-term core pick, complemented by a single short-term tactical opportunity. This approach reflects a disciplined focus on risk management and patience as more attractive entry points develop.

Pick 1 : Constellation Energy Corporation - CEG

Constellation Energy Corporation (CEG) provides high-quality, long-term exposure to the structural growth of carbon-free baseload power at a time when electrification, AI-driven data center expansion, and grid reliability concerns are accelerating demand for stable energy supply. As the largest producer of nuclear energy in the United States, Constellation occupies a uniquely strategic position within the power market, offering reliable, zero-emission generation that is increasingly difficult to replicate. The company’s predominantly nuclear fleet allows it to benefit from rising power prices and long-term offtake agreements while maintaining a favorable emissions profile.

Near-term volatility has increased following a sharp correction from recent highs, driven by profit-taking and broader risk-off sentiment across energy and infrastructure equities. However, the underlying fundamentals remain intact. Demand for firm, always-on power continues to rise as data centers, AI workloads, and industrial electrification place growing strain on the grid. Constellation’s scale, operating expertise, and long asset life position the company to capitalize on these structural trends while competitors face regulatory, capital, and construction hurdles.

From a strategic standpoint, Constellation benefits from limited new nuclear supply, improving regulatory sentiment toward nuclear energy, and increasing recognition of nuclear power’s role in meeting decarbonization targets without sacrificing grid stability. Strong cash generation, disciplined capital allocation, and long-duration assets provide resilience through commodity and rate cycles. At current levels, CEG offers compelling long-term exposure to the intersection of clean energy, grid reliability, and secular electricity demand growth, making it an attractive core holding within the power and infrastructure space despite near-term price volatility.

Pick 2 (Short-Term) : US Copper Index Fund – CPER

United States Copper Index Fund (CPER) offers a timely short-term opportunity as markets recalibrate growth expectations, infrastructure spending, and energy transition dynamics. Copper sits at the center of global electrification, benefiting from sustained demand tied to power grids, renewable energy buildout, electric vehicles, and data center expansion. While recent volatility has pressured base metals alongside broader risk assets, copper’s fundamental backdrop remains constructive as supply constraints persist and inventory levels remain historically tight.

From a positioning standpoint, copper has begun to attract renewed interest following its pullback, with buyers emerging at key support levels. The metal continues to respond positively to signs of stabilizing global growth and policy support for infrastructure and industrial investment. Exposure through CPER provides a direct and efficient way to participate in copper price movements without company-specific execution risk. Maintaining exposure this month offers attractive upside optionality should growth expectations firm or supply-side constraints reassert themselves, while also serving as a strategic allocation to a metal critical to long-term structural demand.