24 June 2026
While chip stocks fell sharply this week, our portfolio manager Daniel Martin was watching the trade most investors missed. The software names that had been sold off for months were quietly recovering.
Daniel doesn’t treat software as a single bet. Buy the whole sector and you inherit the weak names alongside the strong ones. What he looks for are businesses with real switching costs and pricing power, the ones customers can’t easily walk away from when sentiment turns.
ServiceNow is his clearest example. More than 450 of the Fortune 500 run on it. The company moved from seat-based pricing to a hybrid model before most of the market understood why that mattered, then lifted its AI revenue guidance from $1bn to $1.5bn in a single quarter. The core business held firm.
“You can’t just simply basket it and go buy all the SaaS names,” Daniel said.