Kim Bolton, president and portfolio manager of Black Swan Dexteritas

FOCUS: Technology stocks

MARKET OUTLOOK:

The wrestling match between the stock market and interest rates continued into March. Presently, inflation readings are tame, but everyone agrees (including the Federal Reserve) the continued pace of central banks’ monetary stimulus and the ever-increasing fiscal aid will produce boom-type GDP growth rates in the coming quarters. This will inevitably lead to higher inflation readings and therefore higher interest rates. The discount those will place on future earnings of the high P/E priced tech stocks, particularly in the software space, will eventually impact the reopening stocks (i.e. travel, consumer retail, industrials, etc.). More recently, nervousness around global growth has come to the forefront, with Germany re-instating COVID lockdown measures while concerns linger over Europe’s slow vaccine rollout.

 Both tailwinds and headwinds are impacting the direction of global stock markets. The best way to operate in these volatile markets is to stick with our strategy of investing in the leaders of those long lucrative technology themes. Investors should opportunistically buy bargain priced tech vendors and tech end-users, and stick to our discipline of selling them at their respective price targets.

We’re all hoping for a quick return to normalcy, but if the last year has taught us anything, things often get more unpredictable by the day. We have therefore positioned the BSD Global Tech Hedge Fund with the expectation of more market volatility; the fund is 95 per cent invested across a couple dozen tech vendors and tech end-users, with a 60 per cent short equity indice hedge on the invested portfolio that will incrementally grow if the market deteriorates.

The BSD credo – prosperously navigating unexpected events with great skill and agility – defines our ability to outperform in these uncertain markets

TOP PICKS:

Kim Bolton's Top Picks

Kim Bolton, president and portfolio manager of Black Swan Dexteritas discusses his top picks: BYD Company, Sony and Infineon Technologies.

BYD Company (BYDDY OTC)

Infineon Technologies (IFNNY OTC)

Sony (SNE NYSE)

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 BYDDY OTC  Y Y  Y 
 IFNNY OTC  Y Y  Y 
 SNE NYSE  Y Y  Y 

 

PAST PICKS: March 31, 2020

Kim Bolton's Past Picks

Kim Bolton, president and portfolio manager of Black Swan Dexteritas discusses his past picks: Micron, Shopify and Sea Ltd.

Micron Technology (MU NASD)

  • Then: $42.06
  • Now: $88.03
  • Return: 109%
  • Total Return: 109%

Shopify (SHOP TSX)

  • Then: $589.62
  • Now: $1369.00
  • Return: 132%
  • Total Return: 132%

Sea Ltd. (SE NYSE) - Sold Sea Ltd. on October 27, 2020 at US$171.70

  • Then: $44.31
  • Now: $222.65
  • Return: 402%
  • Total Return: 402%

Total Return Average: 214%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 MU NASD Y   Y   Y 
 SHOP TSX Y   Y  Y
 SE NYSE N   N  N

 

Website: www.blackswandexteritas.com