According to MacDonald, satellites are currently the dominant area in the space economy – at the beginning of the year there were about 3,000 active satellites in orbit, now there are more than 4,000. These are mainly used for communication, such as broadband or devices in remote areas, but their potential is enormous, especially given the growth of autonomous vehicles and the bandwidth required.
Another area ORBT is considering is space exploration. While cynics may dismiss this as something out of a Star Trek movie, MacDonald points out that these initiatives – including NASA’s Artemis project, which aims to establish a sustainable human presence on the moon – require equipment and missiles, provided by public companies.
“Then there are things that people don’t even think about, like space debris,” he says. “How are you following this? Lockheed Martin, a major aviation and defense company, can detect debris the size of a marble. With the number of satellites growing exponentially, and with it more debris, this will require more surveillance. These types of businesses are positioned for this secular long-term growth that we see in the space economy. “
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MacDonald believes this is an opportunity for consultants to gain some alpha through above-market growth. While ORBT’s portfolio has some recognizable names, it also includes lesser-known names that have greater potential and don’t correlate with what most Canadians have in their portfolios. “There is a unique diversification advantage to this growth pod of a portfolio,” says MacDonald.