Kim Bolton, president and portfolio manager of Black Swan Dexteritas
FOCUS: technology stocks
Top Picks: Quantum Computing, D-Wave Quantum, IonQ
MARKET OUTLOOK:
April and May 2025 was defined by intense volatility and heightened investor caution. Market movements were often driven by policy headlines and trade rhetoric rather than solely by economic fundamentals. While an initial tariff-induced shock led to a significant sell-off, the market demonstrated an ability to rebound on any signs of de-escalation or policy moderation. The month ended with a sense that the market stresses had pushed investors back towards the growth and technology themes that characterized 2024, though the overarching atmosphere of policy uncertainty and potential trade conflicts kept a lid on bullish sentiment. The “greed and fear tango” aptly described the market’s struggle to price in a rapidly changing and unpredictable global trade and policy environment.
Our BSD Global Tech Hedge Fund currently has a seven per cent cash position. It also has a stock portfolio that is 93 per cent invested across a couple dozen tech vendors and tech end users, together with a 15 per cent short equity indices hedge on the notional value of the invested stock portfolio that will incrementally grow, if the stock market deteriorates.
We will continue to trim those securities that are achieving their respective intrinsic values, and buy those technology growth stocks that exhibit longer, more lucrative investment runways.
- Market-moving news, fast: Get the BNN Bloomberg App now
- Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/subscribe
TOP PICKS:
Quantum Computing (QUBT NASD)
QCi focuses on leveraging photonic quantum computing, utilizing photons instead of electrons to perform computations. This approach allows its systems to operate at room temperature, reducing the need for complex cooling infrastructure. Its technologies target high-performance computing, artificial intelligence, cybersecurity, and remote sensing applications.
D-Wave Quantum (QBTS NYSE)
D-Wave distinguishes itself by focusing on quantum annealing—a method optimized for solving complex optimization problems—rather than pursuing universal gate-based quantum computing. This approach has enabled the company to deliver real-world applications in logistics, manufacturing, and drug discovery. Notably, D-Wave has achieved a significant milestone by demonstrating quantum supremacy on a real-world problem, simulating complex magnetic materials in minutes—a task that would take classical supercomputers nearly a million years.
IonQ (IONQ NYSE)
IonQ’s quantum computers utilize trapped-ion technology, which employs individual atoms (ions) suspended in electromagnetic fields as qubits. This approach is known for its high-fidelity operations and long coherence times.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| QUBT NASD | Y | Y | Y |
| QBTS NYSE | Y | Y | Y |
| IONQ NYSE | Y | Y | Y |
PAST PICKS: May 22, 2024
Cisco Systems (CSCO NASD)
- Then: US$47.43
- Now: US$63.47
- Return: 34%
- Total Return: 38%
Western Digital (WDC NASD) (Spinoff 2/24/2025 to Sandisk)
- Then: US$73.54
- Now: US$51.22
- Return: -8%
- Total Return: -8%
Digital Realty (DLR NYSE)
- Then: US$143.15
- Now: US$169.47
- Return: 18%
- Total Return: 22%
Total Return Average: 17%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| CSCO NASD | Y | Y | Y |
| WDC NASD | N | N | N |
| DLR NYSE | Y | Y | Y |
