Summary
- Global leader in enterprise software, cloud infrastructure and data management
- Accelerating growth driven by AI workloads and multi-cloud database adoption
- Strong revenue visibility supported by a rapidly expanding base of contracted backlog
Background
Caledonia initiated its position in Oracle in 2014 during a period of market scepticism about the company’s ability to pivot from licence sales to a cloud-based, subscription model. Since then, Oracle has delivered sustained financial acceleration, record levels of bookings, and growing market share across both applications and infrastructure. Combined with disciplined capital allocation and substantial share repurchases at highly attractive levels, this has generated significant long-term value for shareholders.
Investment thesis
Oracle is a prime beneficiary of two major secular trends: enterprise cloud migration and the rapid adoption of AI across industries. Its Gen2 cloud architecture—combined with ultra-high-performance networking—enables customers to run AI workloads faster and more economically than on competing platforms, driving strong demand and materially expanding Oracle’s remaining performance obligations.
The company’s database franchise remains central to corporate data management. Oracle’s new AI Data Platform further enhances this position by allowing customers to securely combine private data with leading AI models, reinforcing Oracle’s strategic importance in an AI-enabled world. The Fusion Applications suite continues to gain share, supported by embedded AI capabilities and strong renewals. While capital investment is elevated as Oracle rapidly expands global data-centre capacity, this spend is tightly linked to contracted demand and underpins attractive long-term economics.
We have added to our holding when market dislocations offered attractive entry points and crystallised gains during periods of share price appreciation. Oracle remains a meaningful holding within our Public Companies portfolio and continues to represent the type of durable, high-quality business we aim to hold for the long-term.
As at 31 March 2025.