A play on software-based carrier networks

It’s a long story but carriers are shifting from using dedicated hardware boxes for network functions to software running on general purpose hardware. The trend has been in place since the debut of the internet and the http protocol. Networks are big and ugly though so they take time to change. When they are mission-critical […]

Adding back Apple

We’ve owned Apple (AAPL) on and off (mostly on) for a long time. After scaling down and all the way out at about the $125 mark we have been scaling back in. Besides the obvious 10% drop in the shares we see a few new things developing that we like: The new iPhone, while just […]

Accelerate Diagnostics AXDX

Accelerate Diagnostics (AXDX) is a good example of a new technology that had a market valuation that was too high given their current stage of development. They target a large potential market. Infections are a huge problem in healthcare but figuring out what the infection is and how to treat it takes far too long; […]

Tesla – Range Anxiety is a Mirage

We are happy owners of Tesla TSLA in our fund and have documented our core rationale here: Tesla sits at a great intersection. One pesky objection has been “range anxiety” which it is suggested will prevent broad adoption of the technology. We haven’t dealt with it head-on since we didn’t think we had much to […]

JP Morgan, James Grant & Hedging

Years ago James Grant of the┬áInterest Rate Observer astutely pointed out how how deep and complex the JP Morgan “book” had become thanks to their leading position in derivatives. His account of just the main contours of their positions and operations was mind numbing. The nuances and “emergent factors” of these myriad positions are simply […]

LinkedIn = Facebook for Business

LinkedIn has Facebook to thank for saving their business and making their company a valuable property. LinkedIn struggled over the years to expand usage and discover business models that would generate revenue. They had some luck with using the platform for recruiting and selling premium subscriptions to LinkedIn power users. But most business users and […]

Another General Purpose Technology

A general purpose technology (GPT) is a big deal. Examples in the past include the printing press, the steam engine, and more recently in 1971 the microprocessor. It takes a long time for a GPT to play out from an investment standpoint. The timeframes are getting shorter but they are still measured in decades rather […]

3D Gets Physical

We’ve been following 3D for a few years although most of our early work was on visual 3D and motion processing. It fits into our RealVR ├╝ber theme. On the motion processing side we own a position in InvenSense (INVN) which makes the motion processing chips that are now commonly embedded on mobile phones and […]

Tesla sits at the middle of three major trends

We originally looked at Tesla (Nasdaq: TSLA) as a play on electric vehicles (which to some degree it is) but over time we realized that Tesla was much more than that. In addition to what we see as an attractive valuation there are a few themes that Tesla plays into: Connected Car: The electronic content […]