CSC Idea Post 1/16/25

As promised, we are following up with a second tranche of long-term ideas to complement the list we shared last Friday.

As a reminder, we do not manage these positions actively. In other words, we will not provide frequent updates on how we trade around them. These are long-duration ideas, and we are comfortable sitting through volatility. We generally only exit if (1) the underlying thesis changes materially, or (2) market conditions force us to raise cash.

For transparency, we have created a dedicated Long-Term Ideas tab on the Google Docs sheet. This includes all LT ideas discussed last year, and we will add the remaining names for this year over the weekend. You will also find a column indicating whether we are still long each position.

As always, please perform your own due diligence before acting on any idea. Our posts are strictly educational and do not constitute investment advice. You should consult a qualified financial advisor to better understand the risks and determine suitability for your situation.

If you’ve been following our research, you know we expect a choppy market environment this year, which implies returns may be less robust and volatility more frequent. In that type of tape, tactical positioning and disciplined risk management can reduce frustration, as individual names may experience meaningful drawdowns even if the broader trend remains intact.

The Nasdaq reflects this dynamic well: it has made little net progress since late October. For risk appetite to improve meaningfully, we believe the Nasdaq likely needs to resolve higher and break out to re-ignite animal spirits. We think that outcome remains plausible—which is why we’re positioning accordingly. That said, a decisive breakdown would shift the risk/reward and likely lead us to raise cash.

With that said, here is tranche two of our long-term ideas:

Subscribe to our premium content to read the rest.