SiTime Corp

We added to our position in SiTime during the quarter. SiTime develops silicon-based timing solutions used across communications, data center and industrial applications. We believe the company is well positioned to benefit from the ongoing transition from legacy quartz timing solutions to higher performance microelectromechanical systems (MEMS) timing devices, with AI infrastructure supporting sustained growth. Recent results significantly exceeded expectations, driven by accelerating demand for AI infrastructure and higher timing content per system, which fueled strong revenue growth and margin expansion. We continue to see multiple catalysts, including higher speed networking, expanding inference workloads and increasing product content.

SiTime, a designer of precision silicon timing semiconductors, rose 116% after strong results and raised guidance driven by AI data center buildouts. The company is benefiting from the increasing demand for its products as AI infrastructure continues to expand, positioning it well for future growth. This strong performance reflects the broader trend of critical system providers gaining market share in corporate IT budgets, particularly in the semiconductor sector.

SiTime develops silicon-based timing solutions used across communications, data center and industrial applications. We initiated a GardenSM position as we believe the company is well placed to take advantage of the transition from legacy quartz timing solutions to higher performance, silicon-based miniaturized mechanical and electromechanical devices. Increasing content in AI-driven infrastructure has also been supporting sustained growth. With multiple catalysts emerging, including data center upgrades and new product expansion, we see a potential path to accelerating revenue growth and operating leverage. We used the recent pullback to opportunistically begin building a position.

We added two new positions in Q1, including SiTime Corporation, which we believe has strong growth prospects and is trading at an attractive valuation. Our focus remains on investing in high-quality growth companies, and SiTime fits this criterion well. The technology sector, where SiTime operates, is a key area of our portfolio, and we are optimistic about the potential for continued performance in this space.