Industrializing Themes: building portfolios that execute, not just narrate

Syndicated from Wealth Professional Magazine Feb 4, 2026

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Why structure beats storytelling

I’ve always called it having a really high IQ — not intelligence quotient, but implementation. Everyone talks about big ideas in the market, whether it’s gold, AI, or energy transition, but ideas alone don’t compound capital. Execution does. That’s why, over the last decade, I built a dedicated thematic portfolio management platform at MLD Wealth. The goal wasn’t to chase headlines — it was to industrialize themes, creating portfolios that translate powerful narratives into repeatable, risk-adjusted outcomes for clients.

We live in a market dominated by narratives: AI, electrification, cannabis, esports, energy transition. Clients understand these intuitively, but portfolios often fail to express them coherently. I’ve seen it firsthand. A team member once told me, “I wanted to do that trade for so long, I just didn’t.” That’s common. We know the right steps to take, but knowing isn’t doing. That’s where advisors and portfolio managers earn their keep.

Thematic investing succeeds only when it’s intentional. Over the years, we’ve been early in gold, esports, online gambling, and AI infrastructure. But what distinguishes these investments is a disciplined framework, not luck. To me, a theme is investable if it creates scarcity, pricing power, or mandated spending — structural dynamics that withstand cyclical noise. Duration, capital intensity, and bottlenecks are the litmus test. We invest in the owners of constraints, not the beneficiaries of attention.

Take AI, for example. It’s not just software; it’s compute power, energy, and critical materials. Electrification isn’t just climate rhetoric; it’s copper, grid, and base-load power. Energy transition isn’t ideology; it’s physics. Narratives travel fast. Infrastructure takes decades. Our platform identifies where capital must flow, and we align portfolios accordingly.

From theme to allocation

Execution begins with decomposition. For the AI economy, I break the theme into compute power, energy generation, grid infrastructure, and critical materials. I ask: where does failure occur if capital is under-invested? From there, I work backward to security selection, identifying market leaders, hard-to-replace assets, and regulatory or capital barriers.

Even in thematic portfolios, balance matters. We explicitly blend growth and stability. A 60/40 framework still applies — 60 percent anchored in structural growth, 40 percent in stability, yield, and liquidity. Utilities, midstream, nuclear, and cash aren’t defensive leftovers; they’re load-bearing components of the economy. Position sizing, volatility dampeners, and active rebalancing are critical. All players must contribute; offense alone isn’t enough.

Thematic portfolios fail when they chase upside without ballast. By engineering portfolios to endure, we create sustainable engagement and performance.

What advisors need to know

For advisors integrating themes, the challenges are real. Client expectations matter. Themes don’t move in straight lines. Consolidation, rotation, and temporary underperformance are inevitable. Education is as important as allocation. Advisors should engage clients early, regularly, and transparently.

Over-concentration is another pitfall. Many ETFs are momentum-weighted, narrow, and volatility-amplifying. As advisors, we need breadth across the value chain, explicit risk budgeting, and disciplined governance. Who decides on rebalancing? Who owns drawdown risk? Who explains underperformance? Without clarity and accountability, thematic strategies become speculative narratives.

Finally, advisors need a platform with depth. Themes aren’t casual allocations; they require named decision-makers, repeatable frameworks, and institutional risk controls. When structured properly, thematic portfolios enhance returns and client participation.

Being part of transformative moments

We’re living through one of the most transformative periods in decades. Just as I witnessed the rise of the fax machine and the internet, today’s clients are experiencing AI, energy transition, and electrification. Those who execute thoughtfully will distinguish themselves from those who are complacent.

I built thematic portfolio capacity not to chase stories, but to own outcomes. By combining structural discipline, risk controls, and high implementation IQ, we’ve created a platform that turns compelling themes into coherent, enduring client portfolios. And in doing so, we ensure that our clients participate meaningfully in some of the most significant economic developments of our time.