Kim Bolton, President and Portfolio Manager, Black Swan Dexteritas (BSD)
Focus: Technology stocks
Top picks: Elbit Systems, AeroVironment, Kratos Defense & Security Solutions
MARKET OUTLOOK:
In July, global financial markets delivered mixed performance. Strong corporate earnings provided support, but ongoing uncertainty around trade and tariff negotiations weighed on sentiment.
U.S. equities, especially large cap tech, led market gains, while performance across Europe, Asia, and Latin America was mixed. Interest rates moved higher for investors as inflationary pressures persisted, although the U.S. Federal Reserve left its policy rate unchanged.
August is typically a much less bullish month than July. Indeed, in post presidential election years, August has the second-worst performance with an average loss of -1.2 per cent. Furthermore, if the president is in his second term, like he is now, the figures get even worse with an average loss of -3.4 per cent. Your BSD team remains bullish long-term and plans to add to positions on a dip in the markets, targeting new highs later this year.
Without a doubt, the artificial intelligence theme is driving corporate capex and the stock markets higher. An intriguing sector of growth is the modern defence ecosystem. Artificial intelligence is transforming the modern defence landscape by enabling smarter, faster, and more autonomous military capabilities. AI is becoming a force multiplier in both strategic planning and tactical execution across the defence sector. 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. Your BSD Team is proud to be your investment ‘eyes and ears’ in the technology arena.
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TOP PICKS:
Elbit Systems (ESLT NASD)
Elbit Systems Ltd. is an Israeli-based international defence and military technology company, founded in 1966 and headquartered in Haifa, Israel.
It’s recognized as Israel’s largest private defence contractor and a leading global provider of advanced defence systems.
The company offers a comprehensive suite of solutions including the C4ISR, unmanned aerial systems (UAS), cyber, electronic warfare (EW), intelligence, surveillance, reconnaissance (ISR), command and control, and homeland security systems.
In 2024, Elbit had approximately 18,407 employees and total assets around US$10.9 billion, with equity of $3.28 billion.
AeroVironment (AVAV NASD)
AeroVironment, Inc., founded in 1971 by Paul B. MacCready Jr., is an American aerospace and defence technology firm headquartered in Arlington, Va.
The company is known for its trailblazing work in unmanned systems, and develops and manufactures unmanned aerial systems (UAS), loitering munitions, and robotic technologies for defense and government customers globally
Kratos Defense & Security Solutions (KTOS NASD)
Kratos Defense & Security Solutions, Inc. is an American technology and defence contractor headquartered in San Diego, Calif. Founded in 1994 as Wireless Facilities Incorporated, the company rebranded to its current name in 2007. It serves primarily U.S. federal government clients, allied nations, and select commercial customers. As of December 2024, Kratos employed approximately 3,600 people.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ESLT NASD | Y | Y | Y |
| AVAV NASD | Y | Y | Y |
| KTOS NASD | Y | Y | Y |
PAST PICKS: AUGUST 28, 2024
Microsoft (MSFT NASD)
Then: US$410.60
Now: US$530.30
Return: 29%
Total Return: 30%
Meta Platforms (META NASD)
Then: US$516.78
Now: US$787.87
Return: 52%
Total Return: 53%
CyberArk Software (CYBR NASD)
Then: US$279.95
Now: US$421.89
Return: 51%
Total Return: 51%
Total Return Average: 45%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| MSFT NASD | Y | Y | Y |
| META NASD | Y | Y | Y |
| CYBR NASD | N | N | N |
