Friends & Partners,

May was a month defined by two competing forces, and for once, both moved in an encouraging direction.

On the geopolitical front, the Iran situation remains unresolved but for the first time since February, the market is pricing in a credible path toward settlement. Shipping restrictions on the Strait of Hormuz have eased and tightened several times over the past six weeks, and oil has pulled back from its peak near $126 to trade in the $95–$105 range as ceasefire talks gain traction. The market’s best read right now is that this ends and that expectation is doing meaningful work across every asset class.

On the AI front, there is no ambiguity. Microsoft, Alphabet, Meta, and Amazon each raised capital expenditure guidance for 2026 when they reported Q1 results. The spending is accelerating. More importantly, it is beginning to show up in results. The thesis is no longer theoretical.

The portfolio was built to perform in both of these environments. This month I want to show you exactly where the returns are coming from using real numbers from our own data because the picture is more interesting than the headlines suggest.

Where the Returns Are Really Coming From

The strongest returns in this portfolio do not come from the names that dominate the financial press. They are coming from the physical layer that makes AI possible: the companies that test the chips, cool the data centres, and distribute the power.

Vertiv, which builds the liquid cooling and thermal management systems inside AI data centres, is up 97.54% year-to-date. Teradyne, which manufactures the precision testing equipment every AI chip must pass through before it ships, is up 87.49%. Targa Resources, natural gas infrastructure that feeds the power-hungry data centre build-out  is up 40.62%. Eaton, which manages the electrical distribution and power systems behind AI infrastructure, is up 25.34%.

The AI platform names tell a more nuanced story. Alphabet is up 20.16% and Nvidia 18.24%  solid performers. Amazon has contributed 14.05%. Apple 13.19%. But Microsoft is down 4.98% and Meta down 7.51% year-to-date, reflecting a market still calibrating the timeline between AI capital expenditure and AI revenue. That calibration is healthy and temporary. The underlying competitive positions of these businesses have not weakened.

On the Canadian side, Hammond Power Solutions which manufactures the dry-type transformers essential for every data centre, EV charging installation, and grid expansion in North America  is up 99.64% year-to-date. The Fidelity Global Innovators ETF, which provides exposure to private market leaders including Anthropic and SpaceX, is up 41.63%. Canadian Natural Resources is up 39.79%, Teck Resources 38.11%, and Celestica,  a direct beneficiary of AI hardware demand  is up 34.11%.

This is the picks-and-shovels thesis playing out in real time. The portfolio owns both the enabling infrastructure and the intelligent platforms. Through the first five months of 2026, the infrastructure has led.

The Broader Picture

Defense — Thesis Intact

Lockheed Martin (+7.40%), Cameco (+20.40%), and BWX Technologies (+7.37%) have performed. RTX is down 4.76% year-to-date, reflecting a pullback from its March highs as ceasefire optimism has grown. The underlying thesis — sustained U.S. defense spending and nuclear energy demand — has not changed. The positions remain.

Energy — Canadian Advantage Clear

Canadian Natural Resources (+39.79%), Pembina Pipeline (+26.43%), TC Energy (+22.39%), and Enbridge (+16.40%) have all contributed meaningfully. Targa Resources in the U.S. portfolio is up 40.62%. These businesses generate exceptional cash flow at current oil prices and are not dependent on any single geopolitical outcome.

Power — A Difficult Year, Thesis Remains

Constellation Energy at -23.63% and Vistra at -3.91% have been difficult year-to-date. NextEra is up 5.85%. The rate environment and utility sector repricing have weighed on these names. The underlying demand driver AI data centres requiring 24/7 baseload power that the current grid cannot meet has not changed. These are multi-year positions.

June Planning Focus: A Conversation Worth Having

We are halfway through 2026. It has been one of the most eventful six months in recent memory. The portfolio has performed and this is the right time to step back, look at the full picture, and make sure everything is working the way it should.

If you would like to schedule a mid-year review now, please feel free to reach out at your convenience. No need to wait for us to contact you. We are happy to arrange a time that works best for you. No formal agenda is required.

I also want to raise something that comes up often. Many clients have investment accounts at other financial institutions from a prior relationship, a family member’s estate, a business account, or accounts that simply accumulated over the years. If that is your situation, I am happy to take a look.

Not as a sales exercise as a review. Bring me the statements and I will tell you honestly what you have, how it is positioned, whether the fees are competitive, and whether it fits with the rest of your plan. You deserve a complete picture of your wealth, not just the portion that sits with us. If everything looks right, I will tell you that too.

Simply reply to this newsletter or call the office. We will find thirty minutes and go through it together.

Closing Thoughts

The story of 2026 so far is not about the names that make the headlines. It is about the infrastructure that makes them possible. Teradyne, Vertiv, Hammond Power, Targa Resources, and Eaton have demonstrated that thesis more clearly than any analyst note could.

The fog that defined the first quarter Iran, oil, market volatility, questions about AI spending is beginning to lift. Not because the world has become simple, but because the businesses in this portfolio kept delivering through the uncertainty. The plan was built for both outcomes. Both are playing out.

As always, if any of this raises questions about your specific accounts or your broader plan, please do not hesitate to reach out.

That conversation is always welcome and it is always about you first.