|Palo Alto Networks Inc||58,524||28.4||-6.7||4.6||410.1|
|Crowdstrike Holdings Inc||44,769||68.8||-10.5||38.6||NA|
|Check Point Software Technologies Ltd||19,240||4.9||41.9||-6.1||46.1|
|Trend Micro Inc/Japan||8,288||9.4||22.9||-0.2||55.3|
|CyberArk Software Ltd||6,765||8.3||-15.6||19.2||234.7|
|Tenable Holdings Inc||6,077||22.9||-7.7||19.7||NA|
|Varonis Systems Inc||4,688||33.3||-25.3||35.4||367.1|
|Sailpoint Technologies Holdings Inc||3,882||20.2||-13.3||40.9||NA|
|Venustech Group Inc||3,580||45.8||17.2||54.3||14.5|
|CommVault Systems Inc||2,803||8.3||5.4||21.8||27.9|
Source: Bloomberg and Saxo Group
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 we expect 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 we expect Microsoft’s acquisition to go through)
- SolarWinds (reviewed this company and 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 we will update the basket again.
The stocks we have added are:
Darktrace and F-Secure increases the geographical exposure a bit away from an otherwise very US-centric basket.