Bloom Energy Corp - Class A

Bloom Energy is a leading provider of solid oxide fuel cells for on-site power generation. The company reported a strong quarter, although the stock declined amid uncertainty around the timing and visibility of future demand. Management raised full-year revenue guidance following continued strength in demand from data center customers and expanding operating margins. We believe Bloom is well positioned to benefit from growing demand for behind-the-meter power generation, although we are maintaining a GardenSM position given the wide range of potential long-term outcomes.

Bloom Energy provides fuel cell systems that can supply onsite power for AI data centers. Shares rose after first-quarter 2026 results and new corporate announcements provided evidence that its opportunity may be expanding meaningfully. The most notable update was Oracle’s New Mexico site, which is expected to deploy about 2.4 gigawatts of Bloom capacity, exceeding Bloom’s cumulative historical installations. Management also indicated that additional large-scale projects are under discussion. These developments help validate the thesis that power constraints are creating demand for alternatives to gas turbines and grid interconnects, which face multiyear availability delays.

The fund continued to hold an off-benchmark position in Bloom Energy. The company manufactures and markets solid-oxide fuel cells that produce electricity and can provide an alternative source of energy compared to traditional supply. Data-center operators have increasingly turned to Bloom's solid-oxide fuel cells to bypass grid constraints and power energy-intensive AI workloads. The optimism around Bloom continued during the quarter, with expectations that accelerating AI data-center construction would drive demand for reliable, onsite power-generation solutions, particularly as utilities struggled to provide sufficient grid capacity in many regions.

Bloom Energy Corporation (BE) has emerged as a significant player in the market, becoming the second largest stock in the Russell 2000 Index with a market cap nearing $100bn. The company has benefited from the surging investor enthusiasm surrounding AI, which has driven its stock price up by 86% in the second quarter. This performance reflects the broader trend of high beta and high momentum stocks outperforming, and Bloom Energy's strong operational execution positions it well for future growth. The manager believes that the current market dynamics favor companies like Bloom Energy that are at the forefront of AI-related advancements.

Bloom Energy Corporation (BE) became the second largest stock ever in the Russell 2000 Index at nearly $100bn of market cap before graduating from the Small Cap universe. The company epitomizes the surging investor enthusiasm surrounding AI, which has driven its significant market performance. Despite the recent speculative rally, Bloom Energy continues to execute operationally, contributing positively to the overall performance of the index. The manager believes that the conditions are favorable for continued growth in this sector, particularly for companies like Bloom Energy that are positioned well within the AI-related trades.

Bloom Energy is a provider of solid oxide fuel cells that deliver reliable, on-site power generation for data centers, industrial facilities, and utilities. As demand for electricity is expected to accelerate, particularly from AI-related infrastructure, we believe Bloom remains well positioned to help address power constraints through its distributed energy solutions. During the quarter, shares contributed positively as investors remained focused on the company’s expanding opportunity set tied to growing power demand and data center buildouts.

We are optimistic about Bloom Energy, a provider of solid oxide fuel cell technology that delivers on-site power solutions for utilities, commercial customers, and AI-driven data centers. The company's innovative approach positions it well within the growing demand for sustainable energy solutions, particularly as investments in AI infrastructure continue to expand. This strategic focus on energy solutions aligns with broader market trends, enhancing Bloom Energy's potential for growth and value creation.

The Fund's allocation to Bloom Energy Corporation, a fuel-cell based power generation platform, reflects our belief in its potential for growth. We see Bloom Energy as a key player in the energy sector, benefiting from the ongoing transition to cleaner energy solutions. The company's innovative technology positions it well to capitalize on the increasing demand for sustainable energy sources, which aligns with our focus on companies with durable competitive advantages and strong cash flows.

Bloom Energy, a manufacturer of solid-oxide fuel cell power platforms, surged 133% on accelerating demand for on-site and data center power generation. However, with Bloom leaving the benchmark and its market capitalization significantly expanding, we have begun exiting the position. This decision reflects a strategic shift as we reassess our exposure in light of the company's recent performance and market dynamics.

We saw strength in AI infrastructure enablers such as Bloom Energy, whose alternative fuel cells are increasingly used to help data centers address constraints in grid access. This positions Bloom Energy favorably within the growing demand for sustainable energy solutions, particularly as data centers face increasing power demands and grid reliability issues.