Berbecel explains that along with using the AI theme, he and Lee-Chin had been in a position to actively deploy capital into this area throughout extra unstable occasions available on the market, profiting from volatility in 2025 to seize upside. Because the AI theme has ebbed and flowed over the course of the 12 months, they’ve ridden any volatility as wanted. He notes that previously 12 months, return has neatly correlated with threat and better threat names have posted higher returns for the fund. Small modular reactor firms, as an example, had been among the many prime performers as hyperscalers invested closely on this doubtlessly game-changing know-how.
The fund follows what Lee-Chin calls the three P’s of wealth creation: predict, plan, and persevere. Berbecel admits that these buyers looking for one other 12 months of excessive returns could must persevere extra in 2026, as markets digest what was pushed by AI hype and what elements of this demand for nuclear power will maintain themselves longer-term. Berbecel argues, nevertheless, that fundamentals are nonetheless sturdy for the area. Nations like France, the UK, Japan, the US, and Canada are amongst a bunch of nations which have dedicated to growing, and even tripling, nuclear energy era capability of their respective jurisdictions. Germany, a longstanding holdout towards nuclear energy, has not too long ago elected a authorities which campaigned on supporting the return of nuclear energy. In america, regulatory timeframes are being shortened and the drive to outcompete the world on AI has given rise to a rush in nuclear energy manufacturing.
There are nonetheless dangers to the theme. Berbecel notes that any pullback within the AI theme would possibly end in momentary worth fluctuations for firms energetic within the sector. Coverage adjustments and regulatory threat are components for the sector too, however Berbecel believes that “frequent sense” is prevailing amongst governments close to their nuclear infrastructure. He argues that there’s extra threat on the upside, with the potential suggestions loop of AI getting used to develop and help the monitoring of nuclear energy era, to assist decrease prices and shorten deployment occasions.
For advisors explaining this theme to their purchasers, Berbecel highlights each the quick and long-term drivers behind nuclear power. He notes that whereas the theme has been built-in into an AI play, and might decide up AI tailwinds, there are bigger forces at work that may assist drive appreciation additional.
“There are a variety of themes inside the nuclear theme, and at its core is the necessity to decarbonize the economic system, the necessity to energy our economies with sustainable and competitively priced energy,” Berbecel says. “Nuclear, over an extended time frame, can definitely assist obtain that, by no means thoughts the problems of nationwide safety, power independence, and in addition the necessity to energy AI, that are additionally good to have. I’d recommend, with that core theme in thoughts, that that is nonetheless a longer-term funding.”
