BNN Bloomberg: Cam Scrivens on Finding Value in Lagging Mega-Caps and Global Aviation
In a recent appearance on BNN Bloomberg, JCIC President Cameron Scrivens shared his strategic outlook for 2026, identifying high-conviction opportunities in underperforming defensive sectors, highlighting a valuation disconnect in select mega-caps like Amazon, and breaking down the global infrastructure thesis driving General Electric’s aviation business.
The Quick Take
Strategic Sector Rotation: As the momentum of 2025 consolidates, highly attractive opportunities are emerging in previously overlooked areas such as healthcare, utilities, real estate, and lagging mega-caps.
Amazon’s Valuation Disconnect: Despite the S&P 500 rising 15% in 2025, Amazon was up only 3%, representing a massive catch-up opportunity for a dominant, cash-generating business.
GE’s Structural Moat: General Electric’s aviation dominance is backed by secular growth in emerging markets like India and a highly predictable, climate-driven maintenance and servicing engine.
Interview Insights
1. Capitalizing on the Momentum Gap
Markets are cyclical, and leadership inevitably rotates. Many of the high-flying sectors that dominated headlines in 2025 are trading at premium valuations. As active, fundamental managers, we look to the other side of the ledger—positioning capital in sectors and individual companies that underperformed the broader market but possess highly resilient underlying businesses.
Sectors like healthcare, utilities, and real estate did not fully participate in the broad market surge of 2025. This lack of momentum has compressed valuations, creating highly attractive entry points for long-term compounding.
This valuation gap is even visible within the mega-cap space. For example, Amazon Inc. gained only 3% in 2025 compared to a 15% gain for the S&P 500. This stark divergence represents a rare disconnect between Amazon's growing operational strength—driven by cloud infrastructure and high-margin retail logistics—and its stock price, making it a compelling, risk-managed holding heading into 2026.
"We are looking at high-quality businesses that did not participate in the heavy momentum of 2025. When a market leader like Amazon underperforms the index by over 12% in a single year, the valuation gap represents a highly compelling window for disciplined investors." — Cameron Scrivens, Portfolio Manager
2. The GE Thesis: Global Demographics vs. Aviation Infrastructure
General Electric (GE Aerospace) has been a standout performer for JCIC's mandates, embodying our preference for global leaders with high barriers to entry. The core investment thesis for GE is driven by a massive, structural imbalance between emerging market demographics and existing aviation infrastructure.
Consider the landscape in India:
The Demographic Engine: India represents just under 20% of the entire global population.
The Infrastructure Deficit: Despite its population, the country accounts for less than $4% of available airline passenger seats globally.
As emerging-market middle classes expand, the demand for regional and international travel will scale exponentially. GE, as a dominant manufacturer of commercial and military jet engines, is uniquely positioned to capture this multi-decade tailwind. To filter out speculative risks in these growth regions, we rely on our rigorous 10-Point Investment Framework to focus purely on established infrastructure giants.
3. The Servicing Moat: How Environmental Friction Drives High-Margin Revenue
While selling jet engines is a valuable business, the true operational engine behind GE's cash-flow resiliency is its Maintenance, Repair, and Overhaul (MRO) servicing division.
In rapidly growing aviation markets like India and the Middle East, aircraft operate in extreme environmental conditions, characterized by high atmospheric temperatures and elevated particulate pollution. This environmental friction wears jet engines down at an accelerated rate.
Because GE holds the proprietary intellectual property and long-term contracts required to service these engines, higher environmental wear translates directly into more frequent, non-discretionary, and highly profitable servicing cycles. This represents the ultimate business model: a recurring, high-margin revenue stream that is virtually immune to short-term economic shocks.
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