1OAK RAIA is a thematic fund that invests in disruptive technologies. We seek to identify the “next big thing” — the significant trends that, as they play out, will shape the future of the world’s economy. Our portfolio is then shaped around a handful of these trends.
Our largest strategic allocation is to the “Space Economy” theme. We strongly believe that the space-related sector will be “the next big thing” for the following reasons:
- Our view that a “peaceful arms race” is playing out between the East and the West, focused heavily on a new space race.
- Huge and growing public interest in this sector, fuelled by strong recent progress from names such as Virgin Galactic, SpaceX and Blue Origin.
- It is a mega-sized market, large enough to accommodate multiple players.
Within our strategic allocations we then build positions in the shares of companies we believe will turn out to be winners as these themes unfold. And as a smaller fund, we are able to build concentrated positions even in smaller companies that are off-limits to our competitors. Incidentally, our allocation to the “Space Economy” theme differentiates us from a number of our peers — for example the ARK Invest Innovation ETF has no allocation to this theme.
Within the Space Economy allocation in our portfolio, our largest holding is Virgin Galactic. On Saturday, Virgin Galactic delivered its long-promised test flight to the edge of space. This test was described by the company as “flawless”, and paves the way for three further spaceflight tests prior to flying commercial customers — with the penultimate flight carrying Richard Branson himself.
We believe that this weekend’s successful flight demonstrates Virgin Galactic is on track to complete its remaining test flights on schedule, and sets up a dramatic race-to-space with Blue Origin over the course of the coming months — a race we feel Virgin has every chance of winning.