Pelosi Roasts This 5/10 Asia Portfolio for Missing US Chip Architects

Good afternoon. When Paul and I sit down to review our portfolios, we rely on one very simple, steadfast principle: diligent, proprietary research into the fundamentals that drive global growth. We spend hours poring over public documents and following the macroeconomic currents. Looking at your portfolio, I must say I am fascinated by your commitment. You have managed to conduct what appears to be extensive research while quite literally looking everywhere except the greatest engine of wealth creation in human history: the United States of America.

It is always interesting to review a strategy so entirely decoupled from the American economy. While I have always championed strong diplomatic and economic ties across the Pacific, I must respectfully point out that betting entirely against American innovation is a very curious way to manage one's financial future. Let us bring this portfolio into committee and review the fundamentals, shall we?

I will commend you on one thing: you clearly understand the importance of semiconductors. I see your 43.7% allocation to the technology sector, anchored impressively by Taiwan Semiconductor at a 12.8% weight, Samsung at 10.4%, and SK Hynix at 4.8%. Paul and I also follow the foundry and memory markets very closely—through our own rigorous public research, of course. You have correctly identified that scale advantage, which represents an impressive 66.3% of your portfolio's competitive moat profile, is essential in this space.

However, your geographic exposure is entirely lopsided. Having 91.8% of your capital deployed in the Asia-Pacific region demonstrates a profound lack of balance. You hold solid industrial and consumer discretionary assets—Toyota at 8.2% and BYD at 5.4%—but they are highly exposed to regional economic fluctuations.

I also note your 8.2% in cash reserves. This is a perfectly appropriate amount of strategic dry powder. Paul and I have always believed that when the right opportunity presents itself—and if you are paying close attention, it always does—you must be ready to act decisively. You have the liquidity to pivot; now you simply need the correct legislative and economic compass to deploy it.

🚩 A Staggering Lack of American Technology: A portfolio with zero exposure to American technology is not conservative; it is simply leaving returns on the table. You hold the manufacturers of the chips, but completely ignore the American architects—companies like NVIDIA, Broadcom, and Apple—who capture the lion's share of the margin. This is a failure of basic due diligence.

🚩 Ignoring Public Policy Tailwinds: By avoiding the US market, you are completely missing the massive legislative catalysts we have worked so tirelessly to put in place. The CHIPS Act, the infrastructure bills, the investments in clean energy—these provide generational tailwinds. An investor who ignores the policy environment is flying blind.

🚩 Holding Vanity Projects over Conviction: Your 3.2% allocation to SoftBank Group stands out as highly speculative. We do not allocate capital to funds with no competitive moat simply for the sake of venture exposure. If you want growth, you buy companies with tangible dominance, not a grab-bag of unproven startups.

🚩 No Downside Protection: I see 15 long equity positions and absolutely no structured vehicles or options to manage your risk. Sophisticated investors use all available instruments to protect their capital and build leveraged conviction. Hoping a stock goes up is not a strategy; it is a sentiment.

I would rate this portfolio a 5 out of 10. It earns points for recognizing the importance of the semiconductor supply chain and maintaining reasonable cash reserves, but it loses significantly for ignoring the American economic anchor and the profound policy tailwinds driving global markets.

To bring this portfolio up to an acceptable standard, I recommend the following:

1. Repatriate Your Capital: Take a portion of your Asia-Pacific profits and establish a cornerstone allocation in US technology and cybersecurity. American innovation remains the undisputed leader of the global economy.

2. Follow the Policy: Read the legislation. Identify the domestic infrastructure, clean energy, and healthcare companies that are explicitly supported by robust federal investment.

3. Develop a Structured Strategy: Speak to your broker about utilizing long-dated options (LEAPS) to establish deeper conviction in your highest-quality ideas while maintaining your cash reserves for future flexibility.

4. Trim the Indecision: Consolidate your smaller financial positions (HSBC, Mitsubishi UFJ, Macquarie) into your highest-conviction ideas.

In Washington, as in the markets, uncertainty is never a reason to do nothing—it is simply a reason to do the right thing. Have faith in the American economy, do your homework, and the returns will naturally follow.