Impinj Inc

Impinj, the US listed RFID chip producer, holds the top position, and not for the first time this year. RFID is not a new technology, but only recently has the cost of production reduced to the point where it can economically be applied to many different products, rather than only high value goods. Combine this with improved logistics software and scanning equipment, and suddenly it becomes economic for some of the largest retailers and logistics groups in the world to invest. Financial investors are beginning to see these benefits in the company’s financials and the shares have responded accordingly.

In Q3, we added to our position in Impinj, a company we believe has strong growth prospects in the technology sector. The firm is well-positioned within the AI infrastructure space, which is critical for future advancements. We see Impinj as a high-quality company with unique growth drivers that can sustain high growth, especially as demand for its solutions increases in various end markets.

We added Impinj in Q3 as part of our strategy to invest in high-quality companies with strong growth prospects. Impinj operates in the semiconductor space, which is experiencing significant demand due to advancements in AI infrastructure. We believe that the company's unique position and technology provide it with a competitive moat, making it an attractive investment opportunity.

Impinj provides radio frequency identification (RFID) chips for inventory and asset tracking. The company posted very strong revenue growth versus expectations for the quarter as the adoption of RFID broadened beyond the traditional use cases. We believe the long-term case for RFID remains strong, and we expect that Impinj should benefit from this theme.

Shares of Impinj, Inc. (PI), a provider of radio frequency identification (RFID) technology used in tracking inventory, rose sharply in the quarter. However, we exited the position in the quarter as the valuation became less favorable and as the company’s market capitalization became less consistent with the Fund’s micro-cap focus.

Impinj Inc. operates a cloud connectivity platform in the Americas, Asia-Pacific, Europe, the Middle East, and Africa. We decided to liquidate the position because this company entered an inventory correction phase and those tend to be multiple quarter events. Its shares fell -28% for the time it was held in the quarter.