Saxo Bank reviews cyber security theme basket
Multi-asset investment specialist Saxo Bank continues to review its equity theme baskets, with the latest one to see some of its components go and other being added being the cyber security theme basket.
The industry is undergoing a rapid consolidation with Proofpoint being acquired by the private equity firm Thoma Bravo last year and Microsoft recently going after Mandiant (formerly FireEye), and Avast is being acquired by NortonLifeLock. In addition, McAfee is being taking private by a group of investors.
The industry is rapidly evolving technologically and in terms of complexity, and as a result Saxo expects the consolidation to continue with the industry ending up being dominated by 4-5 companies sitting 80% of the combined revenue in the industry.
The stocks that have been removed due to acquisitions or otherwise are:
- Mandiant (because Saxo expects Microsoft’s acquisition to go through)
- McAfee
- Mimecast
- SolarWinds (Saxo reviewed this company and concluded it is not pure enough cyber security)
Avast is being kept in the portfolio for now but the acquisition by NortonLifeLock will most likely go through in April and at that point Saxo will update the basket again.
The stocks Saxo has added are:
- SentinelOne
- Darktrace
- Radware
- F-Secure
Darktrace and F-Secure increase the geographical exposure a bit away from an otherwise very US-centric basket.
Saxo has recently reviewed its 3D Printing theme basket and its bubble stocks basket.