Go to main site
PostAuthors object (17535)
Thiemo LangSenior Portfolio Manager

We have considerable exposure to the AI theme, particularly through technology enablers that improve the efficiency of data-processing, and electrical infrastructure suppliers.

An inadequate power supply and the inefficient use of power flows are a significant bottleneck in the buildout of US data centres, which we expect to further accentuate in the year 2026 and beyond.

Besides the investments linked to the buildout of the IT power infrastructure, the broader ‘electrification of everything’ theme is included in the Fund through a variety of investments in companies addressing the electrification of the transportation, building and industrial end markets.

Global energy storage systems are set to continue their strong momentum in 2026, supported by increasing grid stability needs, AI-driven power demand, improving economics and expanding market revenues.

We also expect our investments in the humanoid robots’ supply chain to lead to further positive outcomes as 2026 will see their first major rollouts.

We expect continuing decent growth rates of electric vehicles (EVs) in Europe and China, with improved economics making them less dependent on subsidies, and battery technology improvements alleviating ‘range anxiety’.

In the ‘Building efficiencies’ sector, we expect a recovery of sales of electric heat pumps after several years of inventory buildup which needs to be worked through. We remain cautious on the ‘Building insulation’ segment given low housing affordability weighing on residential demand.

Barring further external shocks, we expect visibility on the ‘Industrial electrification’ segments to improve considerably. Given the very lean inventories, this should notably profit the industrial semiconductor companies supplying the automation sectors. We also expect our investments in the humanoid robots’ supply chain to lead to further positive outcomes as 2026 will see their first major rollouts.

Therefore, we remain very constructive on the underlying themes reflected in our investment strategy. Given the urge to accelerate the energy transition towards clean energy solutions and electrification, governments worldwide continue to explore the possibilities of reducing dependency on imported energy sources as well as fostering local manufacturing and power generation.

Related Fund

Smart Energy

All opinions and estimates in this document constitute the best judgement of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.  Polar Capital is not rendering legal or accounting advice through this material; viewers should contact their legal and accounting professionals for such information. This document does not constitute a prospectus, offer, invitation or solicitation to buy or sell securities and is not intended to provide the sole basis for any evaluation of the securities or any other instruments, which may be discussed in it. This is not a financial promotion.  Past performance is not indicative of future results.  A list of all recommendations made within the immediately preceding 12 months is available upon request.  This document is not a personal recommendation and you should consider whether you can rely upon any opinion or statement contained in this document without seeking further advice tailored for your own circumstances. This document is only made available to professional clients and eligible counterparties.  Shares in the fund should only be purchased by professional investors.  The law restricts distribution of this presentation in certain jurisdictions; therefore, persons into whose possession this presentation comes should inform themselves about and to observe, all applicable laws and regulations of any relevant jurisdiction. Issued by Polar Capital LLP and Polar Capital (Europe) SAS. Polar Capital LLP is authorised and regulated by the United Kingdom’s Financial Conduct Authority (“FCA”) and the United States’ Securities and Exchange Commission (“SEC”). Registered address: 16 Palace Street, London SW1E 5JD. Polar Capital (Europe) SAS is authorised and regulated by France’s Autorité des marchés financiers (AMF). Registered address: 18 Rue de Londres, Paris 75009, France.

Smart Energy|05 Jan 2026

A future of power-hungry AI, clean energy and electrification

None
None
Thiemo Lang
Senior Portfolio Manager, Smart Energy Team

We have considerable exposure to the AI theme, particularly through technology enablers that improve the efficiency of data-processing, and electrical infrastructure suppliers.

An inadequate power supply and the inefficient use of power flows are a significant bottleneck in the buildout of US data centres, which we expect to further accentuate in the year 2026 and beyond.

Besides the investments linked to the buildout of the IT power infrastructure, the broader ‘electrification of everything’ theme is included in the Fund through a variety of investments in companies addressing the electrification of the transportation, building and industrial end markets.

Global energy storage systems are set to continue their strong momentum in 2026, supported by increasing grid stability needs, AI-driven power demand, improving economics and expanding market revenues.

We also expect our investments in the humanoid robots’ supply chain to lead to further positive outcomes as 2026 will see their first major rollouts.

We expect continuing decent growth rates of electric vehicles (EVs) in Europe and China, with improved economics making them less dependent on subsidies, and battery technology improvements alleviating ‘range anxiety’.

In the ‘Building efficiencies’ sector, we expect a recovery of sales of electric heat pumps after several years of inventory buildup which needs to be worked through. We remain cautious on the ‘Building insulation’ segment given low housing affordability weighing on residential demand.

Barring further external shocks, we expect visibility on the ‘Industrial electrification’ segments to improve considerably. Given the very lean inventories, this should notably profit the industrial semiconductor companies supplying the automation sectors. We also expect our investments in the humanoid robots’ supply chain to lead to further positive outcomes as 2026 will see their first major rollouts.

Therefore, we remain very constructive on the underlying themes reflected in our investment strategy. Given the urge to accelerate the energy transition towards clean energy solutions and electrification, governments worldwide continue to explore the possibilities of reducing dependency on imported energy sources as well as fostering local manufacturing and power generation.

Share

Related Fund

Smart Energy
  • None

    Thiemo Lang

    Thiemo is Head of the Sustainable Thematic Equity Team and Senior Portfolio Manager of the Polar Capital Smart Energy and Smart Mobility strategies. Before joining Polar Capital in September 2021, Thiemo was the Head of Thematic Investing Energy/Mobility/Materials of Robeco Switzerland Ltd, Zurich, being the lead manager of the RobecoSAM Smart Energy and the Smart Mobility strategies. Prior to joining Robeco in 2007, Thiemo was Senior Portfolio Manager at Lombard Odier Darier Hentsch & Cie of the Infology Fund, where he was in charge of the sub-sectors semiconductors and “new technologies”. Thiemo began his investment career at his previous job at Activest/HypoVereinsbank, Munich in 1999. Being promoted to Portfolio Manager in 2002, he held the performance responsibility for the “Activest Lux NanoTech” fund. Before moving to the financial industry, Thiemo worked at Siemens as a development engineer. Thiemo holds a PhD from the Grenoble Institute of Technology in Optics/Photonics, and an engineering degree (Diploma of Electronics) from the University of Stuttgart.

All opinions and estimates in this document constitute the best judgement of Polar Capital as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Polar Capital.  Polar Capital is not rendering legal or accounting advice through this material; viewers should contact their legal and accounting professionals for such information. This document does not constitute a prospectus, offer, invitation or solicitation to buy or sell securities and is not intended to provide the sole basis for any evaluation of the securities or any other instruments, which may be discussed in it. This is not a financial promotion.  Past performance is not indicative of future results.  A list of all recommendations made within the immediately preceding 12 months is available upon request.  This document is not a personal recommendation and you should consider whether you can rely upon any opinion or statement contained in this document without seeking further advice tailored for your own circumstances. This document is only made available to professional clients and eligible counterparties.  Shares in the fund should only be purchased by professional investors.  The law restricts distribution of this presentation in certain jurisdictions; therefore, persons into whose possession this presentation comes should inform themselves about and to observe, all applicable laws and regulations of any relevant jurisdiction. Issued by Polar Capital LLP and Polar Capital (Europe) SAS. Polar Capital LLP is authorised and regulated by the United Kingdom’s Financial Conduct Authority (“FCA”) and the United States’ Securities and Exchange Commission (“SEC”). Registered address: 16 Palace Street, London SW1E 5JD. Polar Capital (Europe) SAS is authorised and regulated by France’s Autorité des marchés financiers (AMF). Registered address: 18 Rue de Londres, Paris 75009, France.

Related insights

Most viewed insights

Latest insights