Rebecca Teltscher, Portfolio Manager, Newhaven Asset Management
The global economy in early 2026 has been characterized by uneven growth, persistent geopolitical risk, and heightened market volatility. Equity markets have experienced pronounced swings, particularly in higher-multiple sectors such as materials — most notably gold and silver producers — and technology, where artificial intelligence-related enthusiasm initially drove significant capital inflows.
As expectations have evolved, investors have become increasingly selective within the technology sector, expressing concern over elevated capital expenditure programs that have yet to consistently translate into sustainable revenue growth. This recalibration has contributed to greater dispersion in returns and a more cautious tone across growth-oriented segments of the market.
At the same time, capital flows have reflected a broader shift toward defensiveness. Investors have reduced exposure to higher-valuation U.S. equities and rotated toward comparatively lower-valued markets such as Canada, seeking relative stability amid macroeconomic uncertainty.
Riskier assets, including bitcoin, have seen outflows, while fixed income has remained less compelling given ongoing structural and rate-related challenges. In this environment, we are comfortable maintaining a defensive positioning and have benefited from the reallocation trends observed this year.
Although we remain mindful of market uncertainty, geopolitical tensions, and the possibility of an economic downturn, we believe the companies in which we invest are resilient businesses capable of enduring and performing across a wide range of economic conditions.
As one of Canada’s largest pure-play producers in the Montney resource play, ARC has demonstrated consistent operational growth and strong free cash flow generation, benefiting from diversified market access and owned infrastructure that supports cost efficiency and higher realized prices relative to Canadian benchmarks.
Following its earnings release, the stock dropped 10 per cent after Attachie project guidance was withdrawn, a move we think was overdone. We believe management is doing the right thing in intentionally slowing development at Attachie in order to optimize well design and maximize capital efficiency rather than pushing for immediate volume growth.
In the meantime, excess cash flow will be used to buyback shares and continue paying the dividend. We believe our patience will be rewarded as the market is penalizing Arc for short term disappointment, however, as long term investors, we continue to see value in the assets and growth potential.
Emera (EMA TSX)
Emera stands out as a defensive long-term investment owing to its stable, regulated utility business model and significant growth catalysts. Operating across multiple North American jurisdictions, Emera delivers essential electricity and natural gas services to millions of customers, underpinning predictable and resilient cash flows that are less sensitive to economic cycles.
The company’s ambitious multi-year capital investment plan – targeted at modernizing infrastructure, expanding capacity, and adapting to rising demand driven by electrification and decarbonization – is forecast to drive seven to eight per cent rate base growth and support earnings expansion over the coming years. With a history of consistent dividend increases along with a four per cent plus dividend yield, Emera offers a balanced blend of income and long-term value creation for investors prioritizing defensive, cash-flow-oriented assets.
TELUS (T TSX)
As one of Canada’s top telecommunications providers, TELUS has invested heavily in advanced 5G and PureFibre networks that form a critical competitive moat and enable premium services that drive customer growth and loyalty TELUS also maintains a strong track record of returning cash to shareholders through dividends and has an investment-grade credit profile that supports sustained capital deployment.
While operating in a relatively defensive sector, the company’s ongoing execution and infrastructure leadership provide a foundation for long-term stability and growth across business cycles. Income CEO Victor Dodig has a history of turning around an underperforming firm such as CIBC and we are confident in his ability to deliver similar strategies to Telus. With a nine per cent dividend yield, we remain patient on this turnaround story and continue to collect the dividend while we wait.
