Technology, Media & Telecom

Over the course of the year, the QUIC Technology, Media, and Telecommunications (TMT) Canadian Portfolio returned 13.1%, outperforming the benchmark by 12.9% and generating alpha of 17.4%. For several years, TMT’s investment strategy in Canada was to remain overweight in telecommunications, a relatively stable industry with unmatched entry barriers and strong dividend yields. However, the team has since shifted its focus to higher-alpha opportunities within technology companies that exhibit high customer captivity.

The TMT team acknowledges that the Canadian telecommunications sector will remain steady due to tight government regulations and the increasing reliance on wireless devices. However, the TMT team is more optimistic about the growth and return prospects from the technology space, where unprecedented global hyperscale buildout is creating meaningful deal activity and investment opportunities in data centers, cloud infrastructure, and enterprise software. The media industry, which is largely controlled in Canada by telecommunications players, will continue to face increased pressure from disruptive players as incumbents struggle to adapt.