More than double the utilities benchmark.
The portfolio returned +14.04% year to date against 6.21% for the XLU utilities index — 783 basis points of outperformance — while realized income rose 13.1%.
See the numbers ↓Ahead of the sector, and the market.
The strategy returned +14.04% in the first half while holding to a strict income mandate — outperforming the utilities benchmark by 783 bps and the S&P 500 by 453 bps. Relative results came from disciplined positioning inside the utility and energy complex, not from drifting out of it.
Total return · year to date
JAN 1 – JUN 30, 2026Income that compounds.
Second-quarter realized income reached $2.68M, up 10.35% year over year; first-half income of $5.02M is up 13.12%. That keeps the strategy tracking toward the $10.4M midpoint of its full-year target.
Realized income · 2025 vs 2026
USD, MILLIONSProgress to full-year target
H1 REALIZED VS 2026 RANGEA projected 3.0%–11.0% increase over 2025 realized income, with income enhanced roughly 1.8× through selective high-yield positioning.
AI is rewriting the demand curve for power.
The thesis held through a frenetic quarter: AI and the electrification of the economy continue to drive growth across utilities and energy. As trillions in data-center investment were announced, IPPs and regulated utilities became the focus of unprecedented demand — until the harder question arrived.
NextEra / Dominion
A merger announcement reshaping the regulated-utility landscape.
FERC + PJM
Approval of PJM's expedited interconnection track speeds new supply to the grid.
Behind-the-meter
On-site generation deals accelerated — Cummins, the Chevron–Microsoft arrangement, and FuelCell Energy (FCEL) data-center projects.
Ratepayer protection
FERC pushed cost responsibility toward hyperscalers, plus faster interconnection and co-location.
DOE nuclear loans
Up to $17.5B in nuclear supply-chain loans announced to shore up baseload capacity.
Stasis
Supply and demand hold in balance and power prices stabilize.
Under-supplied
Large-load users build behind-the-meter generation to secure 24/7 supply, becoming de-facto generators.
Over-supplied
If the pace of data-center builds slows — a headwind for IPPs, a tailwind for ratepayers.
Where the capital goes next.
Focus stays entirely on energy and utilities, biased toward higher-yield "wires and pipes." We remain alert to sentiment shifts in the data-center debate, and read the administration's wind, solar, and "emergency auction" messaging as negotiating tactics that create opportunity.
Tax-advantaged income
Income growth
Capital preservation
We concentrate exclusively on utilities and energy, pairing fundamental valuation with opportunistic trading. Decades of commitment to these groups built a trusted circle of operators, analysts, and traders who help us stay ahead of near-term catalysts — the discipline that delivers projected income through euphoria and turmoil alike.