Insights
Periodic insights from our Investment and Private Client Teams on a broad range of investment and advice-related topics
Insights from our KJH Technology & Growth Fund Portfolio Manager, Reza Samahin, P.Eng, CFA®
Published by the Private Client Team at KJ Harrison Investors – Philip Zappacosta, Private Client Analyst
As September’s crisp air signals the changing season and the leaves start to show hues of yellow and orange, there’s something uniquely Canadian about this time of year that invites deeper reflection. The summer’s leisurely pace gives way to a more focused energy—much like how thoughtful investors approach their portfolios with renewed purpose as we move through the year’s final quarter.
At KJ Harrison Investors, we understand that technology allocation represents just one component of a comprehensive wealth strategy. Our disciplined, value-based investment philosophy applies across all our funds, whether you’re seeking income generation, capital preservation, or growth. As autumn leaves begin their transformation, it’s an apt time to discuss how innovation continues to reshape the investment landscape and your family’s financial future.
Q2 Reflections: A Season of Recovery and Opportunity
Looking back at the second quarter, markets demonstrated remarkable resilience. After the NASDAQ’s dramatic 25% decline from peak to trough in April, we witnessed a complete recovery—a reminder that disciplined long-term investors can find compelling opportunities even in challenging times.
“We hold positions based on a 5 to 10-year horizon,” Reza explains. “When the market dips, it becomes a great chance to invest. Dollar-cost averaging ensures you buy more when markets are down, smoothing out volatility over time.”
At the close of August 2025, the KJH Technology & Growth Fund has delivered strong performance of 19.95% year-to-date—reflecting our strategic positioning across multiple innovation sectors and our commitment to identifying emerging opportunities before they become mainstream.
Beyond Infrastructure: The Next Chapter of Innovation
The portfolio continues its strategic evolution from infrastructure companies like NVIDIA toward firms developing practical, real-world AI applications. OpenAI’s trajectory from zero to 800 million users in just two years demonstrates unprecedented consumer adoption rates, signaling where the next wave of investment opportunities will emerge.
While consumer applications race ahead, enterprise adoption remains more measured due to security, privacy, and integration considerations. However, we expect enterprise AI acceleration in the coming months, creating opportunities in established software companies and emerging platforms.
Generational Wealth: Learning from Each Other
As families gather around Thanksgiving tables and harvest celebrations across Canada, these moments provide perfect opportunities for bridging generational technology gaps. While younger generations naturally integrate tools like ChatGPT into their daily routines, older generations bring invaluable perspective on long-term value creation and prudent risk management.
Perfect Autumn Conversation Starters:
- Ask your children which AI applications they use for school and work
- Explore how artificial intelligence could transform your family business operations
- Discuss the companies behind the technologies they love and use daily
- Share insights on how business owners are integrating AI for competitive advantage
“Families should embrace technology conversations,” Reza notes. “Familiarity breeds comfort, leading to smarter investment choices. Parents can learn about tech from their kids, fostering mutual understanding and investment opportunities.”
Staying Ahead: Technology Trends We’re Watching
Our approach emphasizes gaining deep industry insights directly from technologists and engineers—not just financial analysts—to recognize emerging opportunities before they become mainstream knowledge.
Key Innovation Areas:
- ASIC Chip Evolution: The shift from GPUs to custom chips could moderate NVIDIA’s growth while creating new opportunities
- Reasoning Models: “Test time compute” models require more computational resources, driving continued demand
- Energy Infrastructure: Massive electricity demands from data centers create derivative investment opportunities
- Embedded AI & Robotics: Companies like Tesla lead in AI robotics for both consumer and enterprise applications
“Understanding underlying tech developments gives us a competitive edge in investing,” Reza explains. “We follow innovations closely—sometimes weeks before they hit mainstream headlines.”
Performance Through the Seasons: Why Innovation Matters
The fund’s 19.95% year-to-date performance through August 2025 reflects strategic positioning across multiple innovation themes:
- AI Acceleration: Increased inference demand and reasoning model adoption fueled technology sector gains
- Space Technology: Rocket Lab exemplified our early-stage approach, demonstrating the potential of our long-term innovation thesis
- Enterprise Software: Strategic positions in companies benefiting from AI integration
“Investing early in emerging themes positions portfolios for substantial future growth,” Reza notes. “We view market pullbacks as buying opportunities, staying focused on our long-term thesis.”
Looking Ahead: A Q3 Perspective with Strategic Insight
As we close out Q3 and prepare for the final quarter of 2025, I’m excited to share that I recently sat down with our Chief Investment Officer, Peter Barlas, to gain deeper insights into the KJH Strategic Investor Fund. This fundamentally-driven, security-specific approach is designed to generate long-term growth and can serve as a core component in helping families build resilient portfolios, navigate transitions, and position themselves well for future generations.
Stay tuned for those insights in our upcoming quarterly perspective—where we’ll explore how strategic investing principles can complement growth opportunities in building comprehensive family wealth strategies.
Family Business Succession: You Don’t Have to Go Alone
At KJ Harrison Investors, we understand that family business succession can be complex, perhaps even daunting. But with thoughtful planning and the guidance of an experienced advisor, families can navigate these transitions successfully while building lasting wealth across generations.
Whether you’re considering how innovation might transform your family business operations, evaluating succession strategies, or ensuring your investment portfolio reflects both growth opportunities and prudent risk management, these conversations benefit from advisors who understand both the business and investment landscapes.
The Canadian Advantage: Embracing Global Opportunities
For Canadian investors concerned about cross-border exposure, our fund addresses key considerations:
- Currency Management: We hedge US dollar exposure to match Canadian liabilities, eliminating currency concerns
- Political Resilience: Leading US tech companies have proven resilient across multiple administrations and economic cycles
- Global Perspective: Canada represents only ~3% of global market capitalization, meaning 97% of opportunities exist elsewhere—particularly in innovation sectors
A Thoughtful Approach to Innovation
As autumn settles across Canada and we reflect on the year’s progress, investing in technology isn’t just about capturing market trends—it’s about ensuring your family’s long-term prosperity while fostering meaningful conversations across generations.
Our disciplined approach combines:
- Professional Management: Access to emerging technology companies before they become mainstream
- Risk Management: Currency hedging and diversification across innovation themes
- Long-term Focus: 10+ year investment horizon aligned with technology development cycles
- Family Legacy: Bridging generational gaps while building wealth through innovation
“Our long-term thesis hasn’t changed,” Reza concludes. “We stick to these themes over long periods, and that has proven to provide good returns. This is really a multi-year decision and multi-year outlook.”
This autumn, as families gather and reflect on the year ahead, consider how technology, innovation, and disciplined investing can work together to secure your family’s legacy. The question isn’t whether technology will continue transforming our economy—it’s whether your family’s wealth strategy is positioned to benefit from that inevitable transformation through thoughtful, professional management.
Philip Zappacosta
Private Client Analyst
KJ Harrison Investors
Having navigated both sides of the wealth equation—as a former COO of a multi-generational family retail business and now as a Private Client Analyst—I bring unique perspective to the complexities that high-net-worth families face, from operational business decisions to succession planning and optimal asset allocation strategies.
This piece reflects our Q2 perspective with updated performance through August 2025. Past performance does not guarantee future results. All investments carry risk, including potential loss of principal. Please consult with a qualified advisor before making investment decisions.
