Everus Construction Group, Inc. (ECG) was another large contributor. The company provides electrical and mechanical contracting services and power transmission and distribution construction services. Fundamentals for the business remain strong, and Everus continues to benefit from strong demand across its data-center, high-tech, hospitality and utility markets. We think current AI demands have already strained the electrical grid in a way that will require upgrades for the next 10 to 20 years, regardless of AI capital expenditures over the next year. Everus stands to benefit from those upgrades.

Everus Construction Group, Inc. (ECG) continues to demonstrate strong fundamentals, benefiting from robust demand across its data-center, high-tech, hospitality, and utility markets. The company provides essential electrical and mechanical contracting services, and we believe it stands to gain significantly from the necessary upgrades to the electrical grid driven by current AI demands. These upgrades are expected to be required for the next 10 to 20 years, positioning Everus favorably in a growing market.

Everus Construction Group, Inc. (ECG) continues to demonstrate strong fundamentals, benefiting from robust demand across its data-center, high-tech, hospitality, and utility markets. The company provides essential electrical and mechanical contracting services, and we believe it stands to gain significantly from the necessary upgrades to the electrical grid driven by current AI demands. These upgrades are expected to be required for the next 10 to 20 years, positioning Everus favorably in a growing market.

Everus Construction Group (ECG) is included in our portfolio as a beneficiary of the ongoing capital expenditures in the data center and AI-related sectors. The construction companies are positioned to gain from the increased spending by hyperscalers on infrastructure. However, the market's perception of these companies can be volatile, as they are susceptible to changes in capital expenditure trends.

Everus Construction Group, Inc. (ECG) was another top contributor. The company provides electrical and mechanical contracting services, as well as power transmission and distribution construction. The stock rose following the company’s reporting of fourth-quarter and full-year 2025 results, which included a record year-end backlog and profit and revenue growth that exceeded consensus expectations. Management highlighted strong demand and bidding activity across data centers, high-tech, hospitality and utility markets. Looking ahead, we believe demand for the services Everus provides will remain strong, particularly as data centers require increasing energy capacity to support the expansion of AI.

We substantially reduced our position in Everus Construction (ECG), an electrical contractor that has benefitted from its exposure to data center construction. However, we believe it has gotten quite expensive in our view, prompting the decision to decrease our holdings.

Everus Construction Group, Inc. (ECG) was another large contributor. The company provides electrical and mechanical contracting services and power transmission and distribution construction services. Fundamentals for the business remain encouraging, and Everus continues to benefit from strong demand across its data center, high-tech, hospitality and utility markets. Regarding Everus, we think current AI demands have already strained the electrical grid in a way that will require upgrades for the next 10 to 20 years, regardless of AI capital expenditures over the next year. Everus stands to benefit from those upgrades.

Everus Construction Group (ECG) primarily builds power lines, pipelines, and similar infrastructure across the U.S. Its revenue backlog grew 38% in 2024, nearly equal to 2024 revenue, indicating strong demand. The company has been a steady grower for the past five years, and in a stable environment, it is worth in the $60s or $70s. The recent sell-off is attributed to its small market cap and the market's uncertainty in valuing it. However, the inefficiency presents an attractive opportunity, especially as it can pass on increased costs to customers.