I’ve noticed that intelligence is getting cheaper fast — and that the companies selling cognitive work are feeling it.
Here's the other side of that equation.
As AI commoditizes thinking, something else becomes scarce: The physical substrate that makes AI run at all — the energy, the land, the water, the copper. And right now, the people who understand this best are moving faster than the market has noticed.
Eric Schmidt, former CEO of Google, went before Congress and said this:
"We're running out of electricity. We need 92 gigawatts more power. The average nuclear power plant is 1.5 gigawatts. You see the problem."
He's right. In Virginia alone, Dominion Energy has confirmed grid connection wait times of up to seven years for large data centers. Solar and wind don't run 24/7. Nuclear takes a decade to permit. Arguably, that leaves one viable bridge on any realistic timeline: natural gas.
And it's not just energy.
Amazon has already locked up future copper supply in direct deals with miners. Water disposal in the Permian basin is constrained — the Texas Railroad Commission significantly tightened Permian Basin disposal well permitting in 2025, suspending deep disposal permits in key areas and imposing new volume and pressure restrictions on all new applications.
Hyperscalers are actively acquiring large land parcels in locations with access to cheap gas and favourable regulatory conditions. In the past 12 months alone, as reported by Bloomberg, Microsoft announced a 300-acre site in Nevada, Google expanded its Oregon campus, and Meta began construction on a data center footprint in Louisiana described as the size of Manhattan.
You can't file a software update to fix a five-year grid queue.
The companies sitting at these chokepoints are what HALX is designed to identify — businesses whose competitive position is rooted in physical assets and capital-intensive infrastructure.
- Matt
IMPORTANT DISCLOSURES
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Distributor: Foreside Fund Services
Investment in the Fund is subject to investment risks, including the possible loss of some or the entire principal amount invested. There can be no assurance that the Fund will be successful in meeting its investment objective. Investment in the Fund is also subject to the following risks:
Limited History of Operations Risk: As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time. This impact may be positive or negative, depending on the direction of market movement during the period affected.
Index Tracking Risk: Returns may not match its reference Index due to costs, timing differences, or operational constraints. The Fund will hold reference index securities regardless of outlook, which may lead to underperformance versus active strategies.
Non-Diversification Risk. The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. To the extent the Fund invests a significant percentage of its assets in a limited number of issuers, the Fund is subject to the risks of investing in those few issuers and may be more susceptible to a single adverse economic or regulatory occurrence. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a diversified fund.