We don't believe in passive investing.
Unlike passive index approaches, which remain mechanically allocated by design, NightSky's systematic framework is built to adapt as market dynamics evolve. Our algorithmic strategies seek to direct capital toward areas of the market that appear more attractive and away from areas that appear less compelling.
Net Alpha
vs. S&P 500
Net Alpha
vs. Russell 2000
management
Index Descriptions: The S&P 500® Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization segment of the U.S. stock market. The Russell 2000 Index® is a widely recognized capitalization-weighted index that measures the performance of the small-cap segment of the U.S. stock market. These indices do not reflect the deduction of fees or expenses. Index returns are shown for comparative purposes only and are not indicative of the performance of any specific investment. Investors cannot invest directly in an index. Index performance data is sourced from Bloomberg.
What makes us different?
Our strategies are designed to be a true alternative to traditional passive index exposure—seeking to compete with broad benchmarks like the S&P 500 while producing meaningfully different portfolios. Rather than concentrating capital in the largest, most heavily owned market leaders, our portfolios have historically emphasized a broader set of companies—including many that are less represented in headline narratives—and have tended to appear less “hype-driven” and more broadly diversified across underlying risk factors than many actively managed portfolios.
As a result, we believe our strategies have demonstrated several distinguishing characteristics over time:
- Competitive performance relative to broad equity benchmarks, net of fees, with the goal of outperforming over full business cycles
- Limited reliance on dominant mega-cap stocks, including reduced exposure to the so-called “Magnificent 7” during periods when market leadership has been highly concentrated
- Relatively low correlation to traditional passive index portfolios, driven by differentiated security selection and position sizing
- An emphasis on managing downside risk during market drawdowns, while still seeking meaningful participation during periods of rising equity markets.
Below are the recent allocations of our US Large Cap Strategy, highlighting our differentiated portfolio construction approach and the strategy’s tendency to hold a different mix of securities than those most heavily represented in broad market indexes.
Top Q4 2025 Holdings:
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AutoZone (AZO) -- 12.0% weight
Consumer Discretionary | Specialty Retail
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Northrop Grumman (NOC) -- 12.0% weight
Industrials | Aerospace & Defense
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Las Vegas Sands (LVS) -- 10.6% weight
Consumer Discretionary | Hotels, Restaurants & Leisure
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Insmed (INSM) -- 7.1% weight
Health Care | Biotechnology
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Regeneron Pharmaceuticals (REGN) -- 7.1% weight
Health Care | Biotechnology
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AppFolio (APPF) -- 5.7% weight
Information Technology | Software
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Alnylam Pharmaceuticals (ALNY) -- 5.5% weight
Health Care | Biotechnology
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PepsiCo (PEP) -- 4.6% weight
Consumer Staples | Beverages
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Synopsys (SNPS) -- 4.6% weight
Information Technology | Software
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MongoDB (MDB) -- 4.4% weight
Information Technology | IT Services
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Western Digital (WDC) -- 4.0% weight
Information Technology | Tech Hardware, Storage & Peripherals
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Kratos Defense (KTOS) -- 3.2% weight
Industrials | Aerospace & Defense
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EchoStar (SATS) -- 3.0% weight
Communication Services | Diversified Telecom Services
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Neurocrine Biosciences (NBIX) -- 2.6% weight
Health Care | Biotechnology
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Barrick Gold (B) -- 2.5% weight
Materials | Metals & Mining
Top Q3 2025 Holdings:
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Huntington Ingalls Industries (HII) -- 12.0% weight
Industrials | Aerospace & Defense
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Broadcom (AVGO) -- 9.8% weight
Information Technology | Semiconductors & Semiconductor Equipment
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Mosaic (MOS) -- 9.4% weight
Materials | Chemicals
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Philip Morris (PM) -- 9.0% weight
Consumer Staples | Tobacco
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W. R. Berkley (WRB) -- 7.8% weight
Financials | Insurance
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Zscaler (ZS) -- 7.1% weight
Information Technology | Software
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Alnylam Pharmaceuticals (ALNY) -- 6.7% weight
Health Care | Biotechnology
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CACI International (CACI) -- 6.0% weight
Information Technology | IT Services
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Monster Beverage (MNST) -- 5.0% weight
Consumer Staples | Beverages
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Axon Enterprise (AXON) -- 4.0% weight
Industrials | Aerospace & Defense
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Verizon Communications (VZ) -- 3.9% weight
Communication Services | Diversified Telecom Services
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Exelixis (EXEL) -- 2.9% weight
Health Care | Biotechnology
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Kimberly-Clark (KMB) -- 2.6% weight
Consumer Staples | Household Products
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Royal Gold (RGLD) -- 2.5% weight
Materials | Metals & Mining
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AutoZone (AZO) -- 2.4% weight
Consumer Discretionary | Specialty Retail
The logos and securities shown represent select publicly traded companies that were held in client portfolios or strategy accounts at various points in the past as a result of the output of Night Sky Capital Management’s U.S. Large Cap strategy. Holdings are shown for illustrative purposes only and do not represent current holdings. Inclusion of any company does not imply endorsement, sponsorship, or affiliation with Night Sky Capital Management. Portfolio holdings should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. The securities identified may not represent all securities purchased, sold, or recommended for client accounts, and it should not be assumed that any investment in the securities shown was or will be profitable.The “weight” shown for each holding reflects the initial target portfolio weight generated by the U.S. Large Cap strategy at the beginning of the applicable quarter. These target weights are produced by the strategy’s systematic, algorithmic process. Actual portfolio weights may differ due to market movements, cash flows, intra-quarter rebalancing, and other considerations. The 15 largest holdings at time of allocation based on target weights are shown; the actual portfolio may have included other holdings. Sector and industry classifications are based on the Global Industry Classification Standard (GICS). Past holdings and past performance are not indicative of future results.